Pakistan Urged to Reduce Import Duty on Palm Oil

Pakistan's palm oil importers want their government to reduce duty on palm oil product imports from Malaysia just like the 15% duty cut made for Indonesia.

They said the Federal Ministry of Commerce had yet to implement the duty cut that was supposed to come into effect in early 2012.

A member of Pakistan Vegetable Oil Mills Association, Nasir Ibrahim, said Pakistan imported over two million tonnes of edible oil products that catered to about 76% of the total country's edible oil consumption.

He said the country's demand for palm oil usually increased around 6-7% two to three months before start of Ramadan.

"The country consumes around 2.2 million tonnes edible oil every year out of which 0.63 million tonne is contributed by the local growers and the remaining is imported to bridge the demand and supply gap," he was quoted as saying by Pakistan's Daily Times on April 7, 2012.

Nasir said the import trade price duty should be increased or decreased in proportion to the changes in the price of imported edible oils in the international market.

The international price of refined bleached and deodorised (RBD) palm oil is hovering around US$1,163 per tonne while the price of palm olein around US$1,153 per tonne.

He said the rates of sales tax levied at 16% and withholding tax and federal excise duty charged at the rate of 2% on the imported palm oil should also be decreased. "Imports are made under Malaysian Palm Oil Concessionary Trade Agreement, like free trade agreement."

Pakistan imports around 8% of its total edible oil imports from Indonesia.