Chairman of All Pakistan Paper Merchants Association (APPMA) Muhammad Saleem Bikiya has urged Federal Finance Minister Dr Miftah Ismail to reduce duty taxes on imported paperboard used in education sector for making copies, exercise books and other printed materials. He said that paper is the basic raw material of printing industry which is levied with the highest rate of duty and taxes that would end up in collapsing local printing.
He said that due to the continuation of anomalous tariffs as there is no duty on basis raw material i.e. wood pulp (H.S.Code 4705) and no duty on finished goods i.e. printed books, literary materials however in semi-finished goods (raw material) i.e. paper and paperboard (H.S.Code 48) there is 54 percent aggregated duty and taxes add-on.
Chapter 4801 declare paper as raw material but government treats paper as luxury goods and charge 54 percent aggregate duty and taxes, it is also thumped with anomalous tariffs, despite of fact local industry makes only few types of paper and Pakistan largely depends on high quality imported papers.
Other factors also appendage increase the price i.e. 10 to 15 percent rupee devaluation, 35 percent surge in wood pulp price, higher demand and low supply, further world price step up due to Chinese government decision to import paper and shutting down paper mills because of environmental problems make paper costlier by over 50 percent since last 12 months.
He said due to step motherly policy of the government which only benefits to handful paper mills, allow domestic producers to monopolize and dictate price and restrict growth of 15,000 printing units in Pakistan.
He noted that Pakistan with the lowest literacy rate, keep the highest rate of duties and taxes on paper (raw material).