The local manufacturers have approached the National Tariff Commission (NTC) for increase in customs duty on finished Sack Kraft Paper from 15 to 25 percent and re-impose Federal Excise Duty on the said item to control deforestation and environmental pollution.
In a communication to the Tariq Bajwa Chairman Federal Board of Revenue (FBR) here on Tuesday, the manufacturers of Polypropylene Cement Sacks said that the manufacturers of High-Tech Polypropylene Laminated Block Bottom, valve Cement Sack, an environment friendly, degradable, reusable and recyclable alternate to Kraft Paper Sack have suffered for the past many years due to their disadvantageous position on account of customs duty anomaly between, Sack Kraft Paper, a finished product and Polypropylene granules, basic raw material. Despite having the low customs duty advantage that renders local units uncompetitive has now been coupled with massive under invoicing of Sack Kraft Paper.
A petition has been filed with the National Tariff Commission for the increase of customs duty on finished Sack Kraft Paper from current 15 percent that is applicable on semi-finished goods having over 15 percent value addition to 25 percent being the duty on finished goods having 5 percent value addition and re-imposition of excise duty to save deforestation and environmental hazards emitted from used Kraft Paper Cement Sack upon degradation and its use to make shopping bags to package food items at cost of health of our masses. In the light of above, the FBR has been requested to investigate the underinvoicing of Sack Kraft Paper and inadmissible grant of customs duty concession to sack paper assembly plants in the Gadoon Amazai Industrial Estate.