The federal government has announced reduction in import duty on scrap of tyres and rubbers by 50 percent aimed at encouraging its use as alternate fuel in the cement industry. Importers can now import scrap of tyres and rubbers by paying only 10 percent import duty instead of 20 percent.
The government has announced relief for cement industry in the wake of rising energy cost and lower dispatches and as part of this relief, Federal Excise Duty (FED) on domestic sale of cement has been proposed to be reduced by Rs 100 per ton. All Pakistan Cement Manufacturers Association (APCMA) had demanded a reduction of Rs 200 per ton on sale in the domestic market. In last year's budget, the government had announced that FED on cement sector would be phased out in three years. A reduction of Rs 200 per metric ton was announced in the last budget 2011-12 and equal reduction of the balance of Rs 500 per metric ton was proposed in the next two budgets.
However, the federal government on Friday proposed a reduction of Rs 100 per ton instead of expected reduction of Rs 200 per ton. Now cement manufacturers will pay Rs 400 per ton on cement sales in local market as compared to Rs 500 per ton presently.
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