Excise duty makes pulses costlier

As the State Bank of Pakistan (SBP) cut the interest rate to 20.5 per cent in April following a sharp deceleration in inflation, harsh taxation measures in the budget 2024-25, along with increasing global prices and a growing gap between supply and demand, have once again led to a rise in food prices, particularly for pulses. Commodity importer Faisal Anis Majeed said the federal government has increased the federal excise duty (FED) on the import of pulses to 1.85pc from 1.25pc, followed by additional taxes on filers and non-filers. As a result, the pulses market is quite panicky about future prices. Retailers have also started charging higher prices for various pulses, citing rising international prices and new taxation measures in the budget. Besides, the demand for various pulses, especially gram, has soared in Muharram. For example, the retail price of gram pulses of different qualities now ranges between Rs320-360 per kg, compared to the pre-budget price of Rs280-320 per kg.