Budget anomalies and high incidence of taxes

The paper trade and printing and packaging industries is suffering terribly due to highest rate of duty/taxes on paper (raw material) and duty-free imports of finished book and other printed material. We have also raised this issue in the National Tariff Commission. World-wide customs duty on the imports of paper and paperboard ranges between 0 and 5 percent.
However, Pakistan Customs Tariff 2014-15, levies 20 to 25 percent customs duty on the import of paper and paperboard (raw materials) which is used for printing textbooks, and other magazines and various other publications; and on paperboard used as a hard and soft-cover of the printed material.
High customs tariff poses the likely threat of considerably diminishing the quantity of imports needed to bridge the wide gap between local demand and supply of paper and paperboard. In the event that imports are reduced, the domestic producers may exploit their dominant position by creating a monopoly or oligopoly and thereby charging consumers exorbitant prices for paper, paperboard and articles thereof.
All Pakistan Paper Merchants Association has been demanding for the last several years for reform and rationalising of tariff on import of paper and paperboard (raw material). At present, printed material is imported tax-free and raw material for printing is highly taxed.
Due to taxing paper and paperboard (raw material) and allowing duty-free imports of printed material is dreadful to paper industries, if books import should continue to be accorded import duty-free status, it is very important that paper and paperboard are also duty-free.
The policy of taxing raw material and allowing duty free import of printed material is devastating to paper trade and industry. It is of utmost importance that the government of Pakistan takes proposal to put in place policy reform and act immediately to remove duty taxes on education as prayed above to save paper trade and industry.

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Proposed tariff for 'Raw Materials

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                     Rev        Rev              Rev

PCI NO             CUSTOMS     SALES     WITHHOLDING

                     DUTY       TAX              TAX

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4802.5510             0%         0%               1%

4802.6200

4810.1310

-                     5%         5%               1%

4810.1990

4810.9200

-                     0%         0%               2%

4810.9900

4804.1100            10%        10%               2%

4811.4100             5%         5%               2%

4804.2100            10%         5%               2%

4805.1100            10%         5%               2%

4810.1320             0%         0%               1%

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