Import of finished goods: steel melters urge government to impose reasonable RD

The steel melters have demanded of the government to impose reasonable regulatory duty on the import of finished goods to protect the local steel industry, as imported billets are still cheaper by Rs 10,000 per metric ton than that of manufactured in Karachi.
The industry sources told Business Recorder that about 173 steel melting units are operating across the country which are providing direct and indirect employment to thousands of people. The government needs to provide business friendly incentives to the local steel melting industry which is backbone of the engineering and housing sectors. The local industry is fully capable to cater to the need of local demand provided a healthy and fair competition is ensured.
The sources further pointed out that sales tax exemption on electricity bill was given to the steel units located in FATA and PATA areas but their total production is transported into sales tax areas like Islamabad, Gujranwala, Lahore and other downstream areas of the country as there is no consumption of steel products in FATA and PATA. As such, it is a main source of unhealthy and unfair competition among the steel producing units in different areas.
The imposition of 5 percent Regulatory Duty on the import of steel scrap has benefited the ship breaking industry that has now an edge of Rs 2000 per metric ton over the local ingot and billet making. The government, therefore, should reduce the sales tax from Rs 7 to Rs 4 per unit on electricity bill to provide level playing field to all the stakeholders.
The sources further said that some re-rolling millers are preferring import of steel billets despite the fact the local industry is producing the international quality standard steel billets which is easily available in the local market. The government should immediately ban the import of finished goods including steel billets to save the hard earned foreign exchange; failing which allowing import could hit badly to the local industry established over a period of decades.