ISLAMABAD: The manufacturers have urged the government to withdraw concessionary duty on import of sorbitol to save the local industry and also demanded increase in the current MFN-based customs duty from 20pc to 30pc, besides removal of the exemption of sales tax on local purchase.
According to the official statement of the National Tariff Commission (NTC), the commission is also considering the demand the local industry, which has approached the NTC for tariff protection by seeking exclusion of sorbitol from the list of items importable on concessionary rate of customs duty under the South Asia Free Trade Area (Safta).
The statement said that Habib-ADM Limited, Karachi, a manufacturer of sorbitol solution 70pc (sorbitol) (PCT No 2905.4400 and 3824.6000) has approached the NTC for protection against cheap imports.
On the request of the manufacturer, the NTC has initiated an inquiry and would welcome views, suggestions and proposals from all parties having interest in the business relating to or associated with exports, manufacturing, marketing and use of sorbitol. These suggestions may be sent to the NTC secretary, Islamabad within 15 days, said the announcement. A public hearing on the issue will be held on March 26 at NTC.
According to the applicant, the concessionary rate on import of sorbitol under Safta is 5pc, which creates tariff anomaly as its input materials are also importable at 5pc.
The sorbitol is mainly used by the pharmaceutical industry as carrier, and bodying agent in products such as cough syrups, toothpaste and skin ointments. Sales tax is exempted for pharmaceutical industry. Pharmaceutical industry does not pay sales tax on imports of sorbitol.
