Pakistan Chemical Manufacturers Association (PCMA) has expressed dissatisfaction over indifferent approach of the Federal Bureau of Revenue (FBR) towards PCMA's proposal regarding withdrawal of regulatory duties on essential chemicals to be used for value added chemical products. PCMA executive committee members and chief executive officers of the chemical companies held a joint meeting at PCMA head office here Tuesday to take serious note of the crisis created by the levy of regulatory duties on chemicals.
The meeting conducted by PCMA's senior vice chairman Zafar Mahmood deliberated on the issue and prepared a fresh proposal bearing 14 HS codes related to essential chemicals like varnishes, cocoamidopropyl betain, pigment thickener and glass microsphere for highway safety road. The proposal termed these items as the basic industrial raw materials to be used for production of various value added products like textile chemicals, paints, coatings, emulsions, paper chemicals and similar other products. Speaking on the occasion, Zafar Mahmood said that imposition of regulatory duty on the imported raw materials had significantly increased the cost of production of the member companies. He appealed to the FBR Chairman for immediate withdrawal of regulatory duty on imported chemicals so as to keep the chemical products competitive with the imported items of the similar categories.
Earlier, PCMA Secretary General Iqbal Kidwai informed the participants the local chemical industry is facing severe crisis after levy of the high regulator duties on different chemicals a few months back. PCMA reviewed the situation and submitted comprehensive proposal to the FBR who did not accept the proposal in totality. FBR reduced duty on a very few items, which was nothing more than an eye-wash that led the PCMA to hold a follow up meeting of the stakeholders, he added. The meeting concluded with quick compilation of a fresh set of recommendations and their immediate dispatch to the FBR and other quarters concerned.
The association's office bearers urged the Member Customs Zahid Khokhar to eliminate the regulatory duty on entire tariff lines as per PCMA proposal during the next round of review on SRO-1035. They were of the view that the proposed relief, if given to the local chemical industry, would increase domestic manufacturing of value added chemical products and discourage imports of the similar product line from abroad.
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