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The government has raised the minimum retail price for tea to Rs1,200 per kilogram. This adjustment, outlined by the Federal Board of Revenue (FBR), applies uniformly to both imported and locally supplied tea.
Under the FBR’s new guidelines, sales tax on tea will be calculated based on the updated price of Rs1,200. If retailers sell tea above this price, sales tax will increase proportionately.
As per media reports, this price floor may lead to further price hikes in the retail market, placing additional financial strain on consumers.
Pakistan’s inflation rate reached 7.2% in October, driven largely by food price increases. While broader inflationary pressures appear to be easing, this offers a potential opportunity for a significant interest rate cut in the upcoming State Bank of Pakistan (SBP) Monetary Policy Committee meeting on Monday.
Despite recent declines in core inflation, both annual and monthly inflation metrics have shown slight increases. On Friday, the Pakistan Bureau of Statistics (PBS) reported inflation rising to 7.2% in October, exceeding market expectations and surpassing the Ministry of Finance’s projected 6-7% range for November.
