Karachi, April 15, 2025 — The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on the government to urgently address persistent anomalies in the tea import regime, which are adversely impacting tea traders and the broader supply chain.
FPCCI President Atif Ikram Sheikh stressed that tea must be recognized as a basic necessity, not a luxury item, and therefore should not be subjected to excessive taxation.
Highlighting the economic and social significance of tea consumption across Pakistan, Atif Ikram Sheikh stated that the current policy framework unfairly treats tea as a finished product at the import stage, when in fact, tea undergoes significant processing, blending, and packaging before it reaches consumers. “Charging nearly 70% in cumulative duties and taxes on imported tea is excessive and crippling for small and medium enterprises (SMEs),” he said. “Tea is an essential item for millions, especially among the labor class, and its affordability must be safeguarded.”
The FPCCI president further emphasized that tea is a daily dietary component for the working class, often consumed with staple foods like roti or paratha by construction workers, factory laborers, and daily wage earners. In this context, FPCCI is advocating for a more facilitative environment that ensures tea remains accessible and affordable for all income groups.
Aman Paracha, Vice President of FPCCI and former Chairman of the Pakistan Tea Association (PTA), echoed these concerns, pointing to an arbitrary maximum retail price (MRP) set by the authorities at PKR 1,200 per kg. “This benchmark is detached from market realities, where tea prices typically start at PKR 800–900 per kg,” Paracha noted. “Taxing traders based on this inflated MRP puts unjust pressure on SMEs.”
Paracha also warned that unless the current MRP policy is revised, tea prices could rise by PKR 300 per kg, burdening consumers and undermining price stability. He urged the government to differentiate between raw, unblended tea and finished products like tea bags when setting MRP. FPCCI reiterated its demand for reforms that protect the tea trade and ensure stable prices for one of the country’s most widely consumed beverages.