The Planning Commission has convened a meeting of the stakeholders on rationalisation of duty structure of polyester fibre on Wednesday in Islamabad.
A circular issued by the Commission says that in consultation with the chairman Central Board of Revenue (CBR) it has been decided that a meeting on rationalisation of duty structure of polyester fibre will be held under the chairmanship of Planning Commission deputy chairman on May 12, 2004 in the Planning and Development Division, Islamabad.
It may be pointed out that the Karachi Chamber of Commerce and Industry (KCCI) in its budget proposals suggested the removal of duty on import of raw material for the local polyester manufacturing industry.
It said that the heavy duty on raw materials was obstructing production and export of polyester fibre as the industry has reached a stage where it could produce surplus for export.
The KCCI said the main obstacle in removal of duty on polyester raw material is a 10-year sovereign guarantee of duty a 10-year sovereign guarantee of tariff protection to the extent of 15 percent provided to the ICI Pakistan by the Government of Pakistan.
The KCCI suggested that in the larger interest of national economy the government should negotiate settlement with the ICI providing reasonable compensation for the sovereign guarantee, and get rid of it before 2008 otherwise the entire polyester industry and exports would suffer for three more years.
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