FAISALABAD: Shabbir Husssain Chawla President Faisalabad Chamber of Commerce and Industry (FCCI) has expressed concern over the Regulatory Duty (RD) levied on more than 700 items without any consultation with stakeholders.
In a statement issued here today, he termed this trend as the continuity of one sided and un democratic decisions taken by the government, particularly in connection with economic related matters, adding that it is highly detrimental to the national economy.
He said that the business community has no objection on levy of RD on unnecessary and luxury items, but it is a principle stand of the business community including FCCI that government must taken on board the stakeholders before making such important and fundamental decisions which will also have trickling effect on the overall business and industry.
He lamented that in the garb of luxury items, government has imposed RD on various dyes & chemicals which are used as basic raw material for the manufacturing of exportable textile products. Among these include organic surface active products, non ionic, pigment thickener and acrylic thickener etc.
He said that RD on such items will further add to the cost of production of exportable textile products which are already losing ground in international markets because of their un-competitiveness.
He said that similarly there must be many more such items which are being utilized in the manufacturing of exports products.
He said that government is striving to bridge the widening gap between our imports & exports, but such decisions will have negative impact and foil our efforts to increase the exports.
He also quoted a recent meeting held between a delegation FPCCI and Prime Minister Shahid Khaqan Abbasi and said that PM had categorically assured that all economic decisions would be taken in consultation with the concerned stake holders.
He said that before issuing notification regarding regulatory duty, neither FPCCI nor other chambers of Commerce and Industry were consulted or taken into confidence. “Such unilateral decisions are counterproductive and will damage economy instead of achieving the required objective to increase exports.
Chawla further said that government has to take prudent decisions to encourage the substitution of unnecessary imports as heavy RD will result in its smuggling and in this case the government will not get the expected RD but also lose the duties already collected by the imports of these items through official channels.
He said that our borders with neighboring countries are porous and despite of best efforts government has failed to plug the menace of smuggling.
He demanded that Prime Minister must direct the concerned ministry and departments to start negotiation with business community to revisit the list issued by the government for the levy of RD.
“The products used as raw material for the manufacturing of exportable surplus must be exempted from RD”, he concluded.
