Cut in GST, FED: Consumers still paying high prices pakistan

KARACHI: Consumers await relief in prices of various packed household items after one per cent cut in general sales tax followed by removal of other taxes and duties at different stages.
All the measures announced in the budget have come into effect from July 1, 2011 but so far there has been no change in prices of general items such as soaps, toothpaste, detergents and food products. Even beverages (soft drinks) are still selling at higher rates despite reduction in Federal Excise Duty to six per cent from 12 per cent in the budget.
A beverage maker in Karachi claimed that the price of beverages in Punjab has risen by Rs5 on 1.5 liter bottle from Rs70 after the budget.
In Karachi, he said the producers of soft drinks were planning to raise the price by Rs2 to 3 on regular bottle and Rs5 on 1.5 liter bottle due to rising cost of production on account of high gas and power rates, sugar, and higher transportation charges.
He said decline in FED to 6 per cent from 12 per cent is definitely a relief due to which the beverage makers had decided not to raise the prices now.
The government has cut the FED by Rs200 per ton followed by cut in GST from 17 to 16 per cent on cement and according to market analysts it should result in price fall of Rs21 for 50 kg cement bag.
However, only few cement producers had reduced the rate by Rs6 to 10 per 50 kg bag instead of Rs21 as per taxation benefits announced by the government.
Meanwhile, commodity retailers said that so far they have got old stocks of packed items with old price tags and there is no indication from the companies for any price reduction.
The government has yet to check the delaying tactics of the manufacturers of various goods in passing the impact of tax relief to the consumers.
As Ramazan is only 25 days away, consumers had started swallowing bitter pill of rising price trend in flour, sugar, and pulses, etc.
A random price survey showed hike in flour No 2.5 rate to Rs32-34 per kg from Rs28 per kg as compared to last month, while the price of 10kg bag flour has also risen to Rs340 from Rs300.
Consumers, previously paying Rs32 and Rs35 per kg for fine atta and chakki flour, are now paying Rs36 and Rs37 per kg depending on the area.
Flour millers had been making frequent increase in the prices due to rising prices of wheat in the open market.
Retail price of sugar has also risen to Rs70-72 per kg from Rs66 per kg last month due to increase in rates by the millers.
Masur pulse No 1 quality also became costlier to Rs90 from Rs88 per kg last month, while mung (washed) rate also rose to Rs148 from Rs145 per kg. Gram pulse rate had increased to Rs73 from Rs68 while white gram rate rose to Rs120 from Rs112 per kg.