The tariff structure on the tinplate sheets has been brought in line with other categories in budget 2007-2008 by categorising into prime and secondary quality attracting customs duty @ 10 percent and 20 percent respectively.
According to CBR announcement on Thursday, the government had devised a policy that all the units, set up in the Special Industrial Zones (SIZs), will be exempted from duties and taxes on their imports of raw materials for a period of 10 years.
As a consequence of this policy, Siddique Sons put up their unit in a SIZ at Windher, Balochistan and accordingly enjoys exemption from customs duty and sales tax vide SRO 71(I)/95 on their import of raw materials for the period of 10 years. The SRO is not specific to Siddique Sons. The unit imports tin free sheets as raw material and converts them into electrolytic tin plates.
It came into production on June 18, 1999 and this exemption will expire in 2009. The company also enjoys exemption from payment of sales tax on their supplies of tinplate under SRO 77(I)/1995. This notification provides exemption to supplies of end products made by the units located in SIZ for a period of 8 years from the date of their production. In case of this the tinplate manufacturing firm, the exemption will expire on June 30, 2007.