$400
Million
Direct savings for companies
over the last 15 years
Over the last two decades, our Founders have helped regularize several matters, which were a hinderance to growth of companies and laager industries. These wins not only ensured smooth operations of businesses but also inspired other industries for adopting similar approach.
• Punjab Water Tax Legislation:
Starting in 2018, this was one of the most talked about issue in previous years. This proposed tax was targeted towards all beverage companies of the country, carried an estimated impact of approx. $130 million, with most companies facing pressures of closing down or reducing operations. Our Founders led the way for industry and formed a coalition against this proposed tax. We approached Punjab Govt to legislate this matter on rational basis, with input from all relevant stakeholders. After a hard-fought battle of almost two years, the industry’s efforts prevailed, and Water Tax was reduced by over 95% from originally proposed number and also included several incentives for water efficiency and conservation efforts.
• Excise Tax:
Beverage industry has long faced discriminatory taxes in the form of excise tax, apart from already applicable Sales Tax. This discriminatory tax was a key hurdle to attracting FDI (Foreign Direct Investment) and local business expansion. Our team has always argued with Governments to adopt a long-term view, which will result in a win-win situation. Due to consistent efforts of over 15 years, our team worked with policy makers to reduce the tax significantly and ensure equitable distribution of tax liabilities. Estimated savings from these efforts are $150 million. Similarly, our team laid the foundation for tobacco industry’s tax rationalization, by proposing a tiered approach towards taxes and strict enforcement of clamping on illicit trade. Over the years, Government and tobacco industry worked together for improving business viability, resulting into gradual increase of tax revenue and reduction in illicit trade.
• Campaign Against IP Infringements:
Development & execution of campaigns to curtail the menace of non-duty paid sector in highly taxed tobacco industry, sector thus resulting in creating awareness among all stakeholders. These campaigns helped legitimate sector in delivering higher volumes, value for industry & increased revenue for national exchequer. Similar campaigns were executed for the beverage industry, whereby the total market share of illicit segment was brought down to 5% from 18% over a period of 05 years. Reforms were also introduced with the help of local Governments to restrict sales and deliver strict penalties.
• Harmonization of Standards:
After the 18th Amendment in Constitution of Pakistan, all four provinces were empowered to make their regulations, including standards for various industries. While this was a beneficial move in the hindsight, it presented a new challenge to industries i.e. varying standards in each province and difficulty with compliance. One such example was food safety, quality and packaging standards that was impacting food & beverage industry. Our team raised this issue with top leadership of the country and each province, insisting on unifying standards on Ministerial platform. After countless meetings between Government and various industries, the matter was formally resolved, thus saving companies valuable resources and investments for complying with different food standards of each province.
• Capacity Building of Food Authorities:
Knights Consulting’s founders played a key role in enhancing the scientific knowledge base of Food Authorities across the country. We achieved this by sharing global best practices, proposing changes in existing regulations and regular engagement with authorities. This resulted in increasing the capacity of personnel and also reduce the probability of introducing abrupt regulations for food & beverage industry.
• Application of Global Processes & Standards:
Harmonization of HS codes to streamline the import of chemicals wrongly classified in hazardous groups with higher duty & extensive documentary requirement. Product registration processes changed with federal authorities to streamline the procedure by creating awareness on global standards & challenges faced by industry.
This help the sector save valuable time and lower costs, while enhancing productivity and avoid red-tapism.