Our Staff Reporter

KARACHI

The local industry has earnestly demanded the government to withdraw regulatory duty on import of those industrial inputs that do not fall under the category of luxury items. In a statement, the President Lasbela Chamber of Commerce and Indusry (LCCI), Yakoob H Karim said that the Federal Board of Revenue (FBR) has taken the decision blindly and without examining the HS Codes to impose regulatory duty on import of various items that fall under the category of luxury items.

He pointed out that some iron and steel products that either not manufactured in Pakistan or do not come under the luxury items, have been included in the list.

He further elaborated that flat-rolled products of iron (HS Code 7210) are not produced in Pakistan but are used as necessary raw-material in various sectors and used to manufacture crown and caps of bottles and massively used in pharmaceuticals, food, beverages, packaging and other industries and due to slapping of 5 per cent R.D on flat-rolled products the industrial cost would increase to about 15 to 20 per cent.

"It's not a luxury item and Regulatory Duty cannot be imposed on import on such items that neither produced locally or used as essential industrial raw-material", Yakoob explained. He demanded the Federal Board of Revenue high-ups to immediately withdraw 5 per cent regulatory duty on flat-rolled products come under the harmonised code 7210.

He said that the business community had already opposed the imposition of the regulatory duty.

The FPCCI has also criticised the imposition of regulatory duty stating such goods are raw material to produce crown and bottle caps and must not come under the axe of regulatory duty, Yakoob argued.