KARACHI - Karachi Chamber of Commerce & Industry (KCCI) President Younus Muhammad Bashir has urged the Ministry of Finance and Federal Board of Revenue (FBR) to completely withdraw Regulatory Duty on numerous imported raw materials, particularly sugar and hydrogen peroxide, with a view to reduce the cost of doing business.

In a statement issued here on Saturday, he termed 20 percent Regulatory Duty along with 20 percent Custom Duty on imported sugar as exorbitant, and hence unacceptable, saying these high duties not only increased hardships for the industry but also created lot of problems for the common man.

He opined that Regulatory Duty along with Custom Duty on sugar, hydrogen peroxide and many other essential raw materials raised the cost of doing business and also caused the inflation to go up. Younus said that if it was really inevitable to impose duties for the protection of local industry, these should be levied at the rate somewhere between 5 to 10 percent.

He demanded the withdrawal of Regulatory Duty as well as reduction in Customs Duty. “This 40 percent is too much, and is equivalent to destroying the related industries,” he added.

KCCI President stressed that all such Regulatory and Custom duties needed to be reconsidered and drastically brought down with the view to encourage industrial production and reduce inflation.

“In this regard, the KCCI and other relevant trade associations should be consulted, their opinions should be sought, adding that withdrawal of Regulatory Duty and reduction in Customs Duty on sugar will surely bring relief for the already overburdened common man who suffers terribly in today’s era of inflation.

He particularly noted the skyrocketing local prices of sugar have intensified miseries for common man as this product is frequently being used in every single household across the country.  Sugar prices have risen from Rs55 per kg to around Rs70 per kg mainly due excessive Regulatory and Custom Duties which terribly hamper the production performance of the industry and  inflate the prices of many household products including sweets, juices, medicines, beverages etc.

He further said that Pakistan’s textile exports had been dwindling from quite some time now because of high cost of doing business, which was due to excessive Regulatory Duty on hydrogen per oxide, an essential raw material of textile sector.

“In order to provide relief to textile exporters and efficiently deal with country’s declining exports, the government must withdraw the Regulatory Duty as done in numerous other cases this year.

KCA for withdrawal of duties,

taxes on import of cotton

APP: The Karachi Cotton Association (KCA) Saturday called for withdrawal of the levy of 3% customs duty, 1% additional duty and 5% sales tax on import of cotton. The KCA, in a statement here, said in view of cotton crop shortfall the local textile mills were “compelled to import raw cotton from aboard to meet their requirements of basic raw material.” Due to levy of customs duty and sales tax on import of cotton, it said, the cost of doing business of the local textile mills had increased making them `uncompetitive in the international market’. In order to make the local textile mills competitive in the international market and ensure their due role in the growth of country’s economy, the KCA urged the government to waive all duties and taxes on import of cotton. It would help earn valuable foreign exchange for the country through export of their products, it added.