LAHORE: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said on Saturday that Federal Board of Revenue (FBR) has assured it of giving due consideration to the case of Regulatory Duty (RD) with reference to auto sector.
PAAPAM Senior Vice Chairman Mumshad Ali said here that he also led the Association’s delegation comprising former chairman Munir K. Bana, Shariq Suhail, Ashraf Shaikh and Aamir Allawala, and held a meeting with the FBR Chairman on the issue of RD on steel products and its impact on auto sector.
He said that delegation expressed its concerns over imposition of 15 percent regulatory duty on the imports of tubes, pipes and hollow profiles of cast iron, steel, flat rolled products of iron and alloy steel billets and bars. He said the Regulatory Duty on various steel materials mainly used by
PAAPAM members should also be withdrawn, as the large re-rolling steel mills and other sectors like fan and other electrical goods industries have been exempted from the RD.
Mumshad Ali claimed that imposition of RD on auto parts manufacturers is unjustified, and in the case of hardening steels the 15 percent RD is in addition to 5 percent import duty and 15 percent protection duty. These items are imported by auto parts manufacturers under SRO 655(I)/2006, as these are not manufactured in Pakistan, and in case of alloy steels produced in Pakistan, this duty is on top of existing slabs making the total impact on price by 30 percent.
While, former PAAPAM chairman Munir Bana added that as the PCT codes of raw materials manufactured by PSM (Pakistan Steel Mills) are common for auto grade material, the auto parts industry has been burdened by this duty on imports of raw materials.
While, former PAAPAM chairman Munir Bana added that as the PCT codes of raw materials manufactured by PSM (Pakistan Steel Mills) are common for auto grade material, the auto parts industry has been burdened by this duty on imports of raw materials.
