Cooking oil & ghee prices decreases in Pakistan after Budget 2024-25
Recent drops in commodity prices have provided relief to consumers in Pakistan, with both cooking oil and ghee decreasing by Rs 75 per kg. However, upcoming changes in the federal budget for fiscal year 2024-25 are expected to increase prices due to new taxes aimed at generating Rs 2000 billion in additional revenue. A proposed 1% sales tax hike could lead to inflationary pressures, potentially raising cooking oil and ghee prices accordingly.
As per the details, the prices of both the commodities came down by Rs 75 per kg, which is a relief to the inflation-stricken public in the country.
However, Cooking oil and ghee prices are anticipated to increase following the federal budget for the fiscal year 2024-25 due to the government’s imposition of several taxes in accordance with International Monetary Fund (IMF) requirements.
The government is likely to raise various taxes or increase the rates of existing taxes to collect an additional revenue of Rs 2000 billion in the next financial year.
Reports suggest that the government might raise the sales tax rate by one percent to generate extra tax revenue. If this proposal goes through, inflation is expected to rise, which will ultimately impact the prices of cooking oil and clarified butter (ghee) in Pakistan.
Cooking Oil and Ghee Prices after budget 2024-25
Because the new budget proposals will come into effect from July 2024 after approval by Parliament. If the proposed 1 percent increase in sales tax rate is approved, the prices of ghee and cooking oil will increase accordingly.
New price of cooking oil and ghee in Pakistan
Following the fresh changes, Brand A cooking oil is now priced at Rs 525 per liter after a drop of Rs 75, while Brand A ghee saw a drop of Rs 25.
Brand B ghee and cooking oil prices have dropped by Rs 70 to Rs 380 per litre.
Source Link: https://www.bolnews.com/business/2024/07/cooking-oil-ghee-prices-decreases-in-pakistan-after-budget-2024-25/
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