Tea Importers Demand Withdrawal of Rs1,200/kg MRP

The Pakistan Tea Association (PTA) has raised concerns over the Ministry of Commerce's decision to set a minimum retail price (MRP) of Rs1,200 per kilogram for black tea imports. The association's president has urged the government to withdraw the regulation, citing that it penalises legitimate importers by forcing them to pay higher taxes and makes tea unaffordable for the poor. Setting the MRP at a flat rate per kilogram will disproportionately impact low-income groups, as black tea is imported at costs ranging from $0.80 to $4.50 per kg. Exemptions granted to Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) deprive the national exchequer of Rs25 billion annually. Enforcing the Rs1,200/kg MRP could raise tea prices by Rs150 to Rs300 per kg, making it unaffordable for the masses. The PTA Chairman has opposed the Federal Board of Revenue's decision to enforce the Rs1,200/kg MRP, highlighting the negative impact it will have on the tea industry and the economy as a whole.