Pakistani producers urge FBR to repeal duty on aluminium scrap import

Pakistan’s engineering firms have urged the federal tax authority to repeal of the five percent regulatory duty paid on the import of aluminium waste and scrap as it is adversely affecting the local industrial production.

In a letter to the Chairman Federal Board of Revenue, Tariq Bajwa, the producers of non-ferrous metal alloys argue that since there are no duties on the import of finished goods, there should not be any for the scrap raw materials either for a fair system.

Production is being greatly hampered by the duty leading to several closures of industrial units, unemployment and deterioration of the overall economy, the producers informed the FBR chief. Additional duty was imposed last month in light of the steady fall of metal scrap price in the international markets.

The finance ministry felt this falling price did not percolate down to the consumers. “Prices of goods manufactured from metal scrap locally have not come down,” said a statement issued by the finance ministry.

Producers attributed the non-transference of falling scrap price to high costs of production in the domestic market and the threat of the lower priced imported finished products eating away their market.

Alloy makers are of the opinion that if the duty on the import of aluminium scrap is kept intact, the FBR should impose a regulatory duty on the import of finished goods as well.