LAHORE: Imposition of 15 percent regularity duty on import of steel billets, bars and wire rods drew mixed reaction among the importers and industrialists. Few take it as good step for stabilizing the local industry others believe this will increase smuggling and unemployment.
While talking to Customs Today Former Lahore Chamber of Commerce President Kashif Anwar said that duty should be imposed if the local demand is fulfilled by the local industry which is not happening. “I am myself in favor of protecting the local industry but this imposition of duty will increase smuggling, under invoicing and inflation” he said.
He added that wire rod is not produced in Pakistan so its construction cost will increase which will penalize the documented and organized sector. He was of the view that government should discuss policies with the stakeholders before taking decisions; this duty will close the cottage industry.
Whereas, Pakistan Steel Melters Association welcomed the levy of 15 percent regularity duty on all steel goods. A member of PSMA said that the decision has come at a time when local industry was in danger of being wiped out due to FTA concessions resulted cheap price of imported steel. Steel exporting countries dodge customs duty up to 20-25 percent by miss-declaration at port.
He added that the government has provided the local market with a fair chance of competition which will foster further investment in steel sector. Over 175000 tons of steel items are imported in last year under various PCT codes. This import was eating away our local steel industry, members of PSMA manufacture steel billets, bars and wire rods and there is ample capacity in the local industry to cater the local steel demand.
