Pakistan assured that it will help resolve the growing crisis faced by 5000 Lankan betel grower families on July 31.
“We will give favourable consideration to the betel tax faced by Sri Lankan exporters” assured the Acting High Commissioner of Pakistan Dr. Sarfraz Ahmad Khan Sipra on July 31. Acting High Commissioner Dr Sipra was in discussion with Minister of Industry and Commerce Rishad Bathiudeen joined by Secretary to Ministry of Industry and Commerce Chinthaka Lokuhetti and DG Commerce of Sri Lanka Sonali Wijeratne as well as representatives of betel leaf exporters of Sri Lanka.
Minister Bathiudeen was meeting the Acting High Commissioner Dr Sipra on the import tax issue faced by Lankan betel leaf exporters to Pakistan. On June 21, 2017 the Government of Pakistan has imposed a Pakistani Rs 200 (SL Rs 291.00) per kg of new regulatory tax on betel leaf imports from Sri Lanka. This was on top of the existing Pakistani Rs 343.00 (SL Rs 500) per Kg of Pakistani customs duty imposed on Lankan betel leaf as of June 21.
“Minister Dayasiri Jayasekera has informed of the plight faced by Sri Lanka’s betel leaf growers” said Minister Bathiudeen addressing the Acting High Commissioner Dr Sipra, and added: “Pakistan has imposed a new regulatory tax on Sri Lankan betel imports. This has affected more than 5000 farmers and their families in Kurunegala, Anuradhapura and Puttalam Districts. Pakistan is the only country where Sri Lanka’s betel leaves are exported to. Sri Lankan betel also the main betel leaf type imported from Pakistan. Lankan growers have informed us that there is a big yield in betel harvest this year but due to the new tax by Pakistan, they are unable to recover even their export duty costs. We need you to intervene and resolve this immediately. I am also talking about this with the Minister of Primary Industries Daya Gamage. This issue can impact on our bilateral trade volumes as well.”
According to the Department of Commerce, in 2016, bilateral trade between Sri Lanka and Pakistan stood at $368 Mn, showing a marginal decline from 2015’s $ 370 Mn.
“We will definitely give due and very favourable consideration to the issue of betel tax faced by Sri Lankan exporters” responded Acting High Commissioner Dr Sipra and added: “If there is any problem we will resolve-be sure on that. I shall take this issue up with my government. We need to have a concerted and conjoined effort to develop our future trade. The regulatory import tax imposed by Pakistan on betel leaves is not only for Sri Lankan betel leaves but for betel leaf imports from all countries as well-across the board. We want you to send a written official representation so that I can take it up with my government now and during our September Joint Economic Commission talks in Pakistan as well. There will be no immediate issue for Sri Lankan betel market in Pakistan since we believe the market will remain stable for the next five years.”
Minister Bathiudeen also instructed the officials of the Department of Commerce to promptly follow up and submit necessary official requests through him. Betel exporters present said that they are prepared to provide full details of their harvests and their export trends re Pakistani market.
According to the Department of Commerce, Sri Lankan betel-leaf exports to Pakistan saw a high of $10.5 Mn in 2013. In 2014 it was at $ 10.46 Mn then declined in 2015 to$ 9.01 Mn and in 2016 to $ 7.38 Mn.However, this year the exports bounced back- in the first six months of 2017 alone totaling $ 10 Million.
Minister Bathiudeen and Acting High Commissioner Dr Sipra also delved in to other bilateral trade development actions by both sides during their 31 July discussions.