Karachi: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Aman Paracha and Pakistan Tea Association (PTA) Chairman Muhammad Altaf announced their plan to legally challenge the government's Maximum Retail Price (MRP) policy on tea, citing significant economic losses and unfair trade practices.

During a press conference in Karachi, Paracha and Altaf demanded the repeal of SRO 1735, which they claimed has resulted in a Rs. 40 billion loss to the national exchequer within the first nine months of this fiscal year. They argued that the Rs. 1,200 per kilogram MRP set in November 2024 has negatively affected the tea trade, suggesting prices could drop by Rs. 200 to Rs. 300 per kilogram if the MRP is revoked.

Paracha emphasized the importance of tea as the second most consumed item in Pakistan and called for its classification as a food item. He attributed the current crisis in the tea trade to widespread smuggling, despite efforts to curb it.

Altaf noted a 17.5% decline in tea imports due to the misuse of FATA/PATA tax exemptions, with a significant discrepancy between national consumption and import figures. He criticized customs authorities for clearing consignments at low values without consulting the International Tea Price (ITP).

Both leaders called for the elimination of FATA/PATA import quotas and a uniform tax regime to ensure fair competition. They argued that the current system disproportionately affects small traders and urged for the MRP's withdrawal to stabilize prices and ensure quality tea availability for consumers.