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Tag: Spike

  • Rain-Soaked Dragon Fruit Yields Spike Prices Amid Diminished Supply

    Rain-Soaked Dragon Fruit Yields Spike Prices Amid Diminished Supply

    Extended periods of rainfall have negatively impacted dragon fruit production, resulting in a doubling of farm-gate prices since May to VND15,000 (US$0.57) per kilogram. The price of the red-fleshed variety has seen an increase to VND20,000 in the Central Highlands province of Lam Dong, the current harvesting location for this fruit.

    Impact on Farmers and Retailers

    Back in May, farmers were selling at a loss, but they now report profits of VND3,000-4,000 per kilogram. Retail prices have followed a similar trend, doubling since May. The standard dragon fruit is now retailing at VND25,000 per kilogram while the red-fleshed variety is priced at VND40,000.

    One trader in Lam Dong province, Xuan, mentioned that yields have decreased 10% compared to the previous year due to heavy rains, although demand remains steady. Meanwhile, Canh, the president of the Binh Thuan Dragon Fruit Association in Lam Dong, reported that output has been on the decline in recent years as many farmers have turned to different crops following a long period of low dragon fruit prices.

    Impact on Export and Overall Output

    Canh also stated that weather conditions have decreased the supply available for export. Customs data indicates a 3% year-on-year fall in dragon fruit exports, amounting to $280 million in the first half of the year. Vietnam currently cultivates dragon fruit on 55,000-60,000 hectares, with an annual output of around 1.4 million tons.

    Questions & Answers

    What has been the impact of prolonged rainfall on dragon fruit production?
    The extended rainfall has led to a decrease in the production of dragon fruit, causing farm-gate prices to double and yields to decrease by 10% compared to the previous year.

    How have the changing prices affected farmers and retailers?
    In May, farmers were selling at a loss but they are now seeing profits of VND3,000-4,000 per kilogram. Retail prices have also doubled since May.

    What has been the impact on the export of dragon fruit?
    Due to weather conditions affecting supply, there has been a 3% year-on-year decrease in dragon fruit exports in the first half of the year.

  • New Tax Measures Trigger 300% Price Surge On Chinese E-commerce Platform In Pakistan

    New Tax Measures Trigger 300% Price Surge On Chinese E-commerce Platform In Pakistan

    Prices on the Chinese e-commerce platform, Temu, have dramatically surged in Pakistan, with increases reaching up to 300% in some cases. This substantial escalation has been reported by customers over the past week, marking a significant shift in the online shopping landscape.

    New Taxes Imposed

    These price spikes appear to be occurring in the wake of new tax measures instituted by the government. The administration last month implemented new taxes specifically targeting online sellers. These levies extend to platforms such as Temu and AliExpress, among others.

    While the companies haven’t issued an official statement providing the reasons behind the price alterations, a spokesperson for Temu pointed to external policy shifts and escalating operational costs across numerous sectors as the primary catalysts for the increases. The spokesperson stated, “We remain committed to providing access to quality products at affordable prices, while fully complying with local requirements.”

    Digital Presence Proceeds Tax Act

    The government disclosed last month that a 5% tax would be put on all goods sold in Pakistan by foreign digital platforms that lack a physical presence in the country. This initiative is part of the Digital Presence Proceeds Tax Act. The goal of this tax is ostensibly to create a more equitable commercial environment. It is said to target online platforms such as Facebook, Google, Spotify and Netflix, in addition to select local online sellers.

    Further, online retail platforms are now also responsible for paying the standard 18% sales tax applicable to local businesses in Pakistan. The government’s rationale for these tax hikes is to equalize conditions for Pakistani businesses that are already subject to both the 18% sales tax and an income tax of up to 35%.

    Concerns Over Impact

    While the government’s intent might be to create a fairer marketplace, experts have voiced concerns over the potential harm the digital tax could inflict on Pakistan’s burgeoning e-commerce market.

    Questions & Answers

    What are the new tax measures impacting e-commerce in Pakistan?
    Last month, the government introduced a 5% tax on all goods sold in Pakistan by foreign digital platforms. These platforms are also expected to pay the 18% sales tax applicable to local businesses.

    What is the rationale for these new taxes?
    The government’s intent with these tax hikes is to create a level playing field for local Pakistani businesses already paying an 18% sales tax and an income tax of up to 35%.

    What are the potential consequences of the new digital tax?
    While the intention is to foster a more equitable commercial environment, experts have raised concerns that the digital tax could harm Pakistan’s rapidly growing e-commerce market.