FPCCI urged to play role for withdrawal of RD

Pakistan FMCG Importers Association (PFIA) has urged the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) to play its role in immediate withdrawal of regulatory duty recently imposed by the federal government on different items on the pretext of controlling imports.
In a letter to the FPCCI President Zubair Tufail, PFIA Senior Vice Chairman Nafees ur Rehman Barry and Vice Chairman Muhammad Ejaz Tanveer observed that this duty would severely hit importers who are also valuable tax payers. He said that experts are of the opinion that the newly imposed regulatory duty will not only cause price hike for consumers but also promote under-invoicing and smuggling into the country that will ultimately result in loss to the exchequer.
'No doubt, the government is painting it as a step to bridge the gap between imports and exports but in our opinion, this is not the right thing. Importers especially of Fast Moving Consumer Goods (FMCG) are meeting the demands of ever increasing middle class who wish to have access to quality food items. At the same time, import of these items, compels the local industry to meet those standards which are required by the consumers thus in other words, FMCG importers are also contributing to the capacity building of the local industry,' the letter added.
They alleged that it seemed the government had conceived this plan in haste without consulting stakeholders as well as in ignorance of the adverse effects it shall have on this sector and the economy at large. 'Practically, similar policy decisions in the past have only encouraged under-invoicing, smuggling and other illegal practices. So the net result expected from this move will be an actual reduction in revenue-collection and a complete failure in achieving any desired objectives,' he claimed.
Concluding his remarks, PFIA Senior Vice Chairman said that as FPCCI Chief represent whole of the Business Community of Pakistan, so he must raise his voice for withdrawal of the duty. He also suggested convening a meeting of all the stakeholders on this issue whereby a unanimous line of action should be taken.