KARACHI: Millions of school pupils would not get their academic books this year due to what paper merchants said ‘extremely’ high prices of locally produced paper, making the cost of printing unbearable for publishers.
“New academic session of schools’ has been started on August 22, but due to extremely abnormal high prices of local paper, not a single book and copies for text book board printed,” reads a statement issued by All Pakistan Paper Merchants Association.
Traders said the local paper mills have doubled the paper price which has impeded the publishers printing textbooks and copies.
The paper merchants strongly raised concern over ‘undue’ protection to domestic paper mills, with extreme high price and poor quality saying that local paper mills have terribly failed to meet the countrywide demand of printing paper and to timely supply to printing industry to print schools’ syllabus books and copies for text books board of Sindh and Punjab They said the negative policy of the federal government only benefits the handful domestic paper mills, but restricts the growth of over 18000 printing & packaging units and supplies chain in Pakistan.
Printing and packaging industry in Pakistan is the second highest value added industry after textiles in terms of hugely employments and massive contributor to national exchequer.
APGAI, APPMA reject hike in paper prices by local mills
They suggested government to, instead of buying from local paper mills at ex-mills price equivalent to around USD 1600 to USD 1700 per m/ton considers allow superior quality printing paper at duty free import, “Water Marked” exclusively for text book board from China, Indonesia, UAE, Japan at ex-mills around US: 850 to US$:900 per m/ton.
Due to abnormal high custom duty/ taxes on wood-free printing paper & coated paper, they accused, local paper producers ultimately exploit their suspicious dominant position and established a monopoly or cartel to charge exorbitant prices for their substandard/ low grade paper & paperboard and articles thereof, which are not of preferred and desired quality required by the printing & packing industry & consumers and text book board. The standard average Ex-Mill prices of China, Indonesia origin of Uncoated Wood-free Printing Paper are around USD 820 PMT but in contrast domestic paper ex-mill price are around equivalent to USD 1500 to USD 1600 per m/tons for their second rated paper, getting unjustifiable advantages of excessive abnormal import paper duty taxes.
They alleged that local paper mills were grossly involved in huge corruption of under invoicing or sales without producing sales tax invoices, domestic mills produce large sheets/ rolls but issues fictitious sales tax invoices @ Rs.120 to Rs150 per kg but in contrast selling at Rs 300/Kgs, defrauding/ declaring copies, exercise books instead of correct declaration to deceive sales tax.
“On the single invoice of 10m/ tons they take out 100 m/ tons, during off seasons falsely create shortage by running down mills to 2/3 days a week, collect & demands advance cash payments prior to 3 months and charge price tag on the date when goods supplied,” the traders’ body Traders further said domestic paper mills are not in a position to export a single metric ton of their high price sub-standard printing paper to even Afghanistan.
High prices and inferior quality are the major factors to confine us to enter USD 1000 billion export markets of books/ leaflets/ packaging materials, etc., which are mainly consumed by Singapore, Malaysia, China, India and UAE. The Federal Minister of Finance & Revenue unfairly imposed 10% Regulatory Duty (RD) in uncoated wood-free paper (HS Code 4802) in budget 2021-22 despite the fact that 11% to 39% Anti-Dumping Duty already exists in said item. This is double jeopardy tax, they said.
Copyright Business Recorder, 2022