Finance minister urged to allow tax exemption on raw salt sales

Finance minister urged to allow tax exemption on raw salt sales

KARACHI: Ismail Suttar, President, Employers’ Federation of Pakistan, and Chairman of Salt Manufacturers’ Association of Pakistan (SMAP), while appreciating the people-friendly Federal Budget of 2020-21, appealed to the Finance Minister, Shaukat Tareen to reconsider for exemption raw salt from tax regime.

In an appeal to the Finance Minister, EFP Chief stressed that table salt is considered an essential food item. He added that from 1990, until today, the iodized salt has remained exempted but businessmen producing iodized salt from table salt will have to pay sales tax on table salt and this will be reflected in the retail price of iodized salt.

“Table Salt is produced from raw Sea Salt, Ismail claimed, and Iodized Salt is produced by adding Iodine to the Table Salt. Law forbids marketing of table salt and allows only iodized salt for eating purposes. Therefore, raw salt if taxed will increase the cost of iodized salt and it will be a burden on the common man. So, the raw salt should be exempted from the sales tax regime”, he added.

Ismail Suttar further said that the salt which will be used and supplied as industrial salt may remain taxable because it will not affect the common man. It will be without Iodine so there should be two grades of salt: one iodized and the other non-iodized salt mostly used in industries after proper processing.

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