The government is considering to reduce the duty on import of raw materials for chemical industry to five percent from existing 10 percent in the upcoming budget, it was learnt.
The Engineering Development Board (EDB) has proposed that duty on soyabean oil crude, raw material for chemical, plastic and other mineral based products, should be reduced to 5 percent in the next budget through amendment in SRO 656 (1) 2006, serial number 11 and 59.
As per existing SRO, there is a condition that final certificate is subject to revalidation of quantities every year from the concerned collectorate. The EDB has also requested the Federal Board of Revenue (FBR) to eliminate the clause of yearly revalidation condition.
It was also proposed that duty on import of vegetable saps and extract should be reduced from 15 percent to 5 percent in the next budget because raw material prices have increased considerably. The duty reduction on inedible tallow, another raw material for chemical industry, was also proposed to be reduced from 10 percent to 5 percent in the next budget.
The EDB held a round of meeting with the FBR officials for the finalisation of the budget proposals regarding duty structure of different sectors of the industry it received through the sectoral committees.
It was learnt that the EDB's proposals were initially rejected by the Board advising resubmission after appropriate amendments. Now the EDB has finalised its proposals, which would be submitted to the FBR for incorporating in the coming budget.
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