Lahore, January 23, 2018 (PPI-OT):Pakistan Chemical Manufacturers Association (PCMA) has expressed dissatisfaction over indifferent approach of the Federal Bureau of Revenue (FBR) towards PCMA’s proposal regarding withdrawal of Regulatory Duties from the essential chemicals to be used for production of value added chemical products. The CEOs of the Chemical Industries and Executive Committee Members of PCMA held a joint meetings at PCMA head office the other day to take a serious note of the crisis created by the levy of Regulatory Duties on chemicals.
The meeting was conducted by Mr. Zafar Mahmood, Senior Vice Chairman and Mr. Abdul Qayoom, Vice Chairman of PCMA. The Chemical Manufacturers held an exhaustive discussion on this occasion and prepared a fresh proposal bearing 14 HS codes related with the essential chemicals like Varnishes, Cocoamidopropyl Betain, Pigment thickener and Glass Microsphere for Highway Safety Road. The proposal has declared these items as the basic industrial raw materials to be used for production of various value added products like textile chemicals, paints, coatings, emulsions, paper chemicals and similar other products.
Mr. Zafar Mahmood, Senior Vice Chairman of PCMA, while addressing the meeting observed that imposition of regulatory duty on the imported raw materials had significantly increased the cost of production of the member companies. Therefore, he has made a strong appeal to the Chairman FBR for immediate withdrawal of regulatory duty on imported chemicals so as to keep the chemical products competitive with the imported items of the similar categories.
Earlier, PCMA Secretary General Iqbal Kidwai informed the participants that the local Chemical Industry was facing a severe crisis after levy of the high regulator duties on different chemicals a few months back. He told that PCMA had taken an immediate review of the situation and submitted a comprehensive proposal to the FBR, who did not accept the proposal in totality and reduced duty on a very few items, which was nothing more than an eye-wash.
That is why the PCMA is compelled to hold a follow up meeting of the stakeholders, he added. The meeting concluded with quick compilation of a fresh set of recommendations and their immediate dispatch to the FBR and all other concerned quarters.
In the cover letter of PCMA’s fresh recommendations, Mr. Zafar Mahmood, Senior Vice Chairman of PCMA has urged the Member Customs Mr. Muhammad Zahid Khokhar to eliminate the regulatory duty on entire tariff lines as per PCMA proposal during the next round of review on SRO-1035. He has claimed that the proposed relief, if given to the local chemical industry, would increase domestic manufacturing of value added chemical products and discourage imports of the similar product line from abroad.
It is notable that Pakistan Chemical Manufacturers Association (PCMA) is a forward looking, apex, trusted and valued body of Pakistan chemical manufacturing industry endeavouring to achieve import substitution and competitiveness through implementing best practices.
For more information, contact:
Pakistan Chemical Manufacturers Association (PCMA)
407-Eden Heights, Jail Road, Gulberg, Lahore, Pakistan
Tel: +92-42-35786867
E-mail: bds@pcma.org.pk
Website: www.pcma.org.pk