Foreign Beverage Firm Seeks Reduction in FED in Upcoming Budget

Coca-Cola Pakistan has urged the federal government to reduce the federal excise duty (FED) on beverages from 20 percent to 16 percent in the upcoming budget. Representatives of Coca-Cola apprised the Senate Standing Committee on Finance and Revenue on Tuesday that Pakistan is the second country after Saudi Arabia where beverages are highly charged and the recent increase in FED has reduced the company’s sales by around 25 percent. It is pertinent to mention here that the federal government had increased the FED on sugary drinks including soft drinks, beverages, energy drinks, and juices under the mini-budget presented earlier this year. At the time, the All Pakistan Fruit & Vegetable Exporters, Importers, and Merchants Association (PFVA) requested Prime Minister Shehbaz Sharif to step in and withdraw the proposed increase in FED on the beverage industry. A US Embassy delegation led by Commercial Counselor Aaron Fishman and representatives of the multi-national beverage companies had also visited the Federal Board of Revenue (FBR) and met Special Assistant to the Prime Minister (SAPM) on Revenue Tariq Pasha and FBR Chairman Asim Ahmad back in February in a bid to persuade the government not to increase the FED.