KARACHI: The local production of steel billets is not enough to cater to the needs for steel bars of grade 60 of the local market, therefore the government should withdraw the 15 percent regulatory duty from import of steel billets.
In a statement issued here, FPCCI President Mian Muhammad Adrees said that foundries and ship-breakers were enjoying subsidies of over Rs20 billion as sales tax on their sales was under the slab of 10pc.
He said that reduction in international prices to the tune of 25pc has reduced the cost of raw material for steel re-rolling mills.
He pointed out that steel re-rolling mills normally import steel billets as a raw material to manufacture good quality steel bars of grade 60 which was a normal requirement in the construction industry.
Foundries also produce their own steel billets to produce their own finished steel bars of grade 60. However, this not being produce in sufficient quantity to match the demand of re-rolling mills,” the statement said.
