The business community in the country on Thursday appreciated government decision of lowering custom duty on re-rollable scrap from 25 percent to 10 percent, which would ultimately benefit the consumers.
The decision of the government would enhance the supply of raw materials to the Steel Mills especially the small mills, Illyas Aziz a renowned businessman and Former President Pakistan Steel Melter Association told APP here on Thursday.
He added this decision of the government would also help in reducing the prices of the steel products. However, he said the reduction in prices of the steel and its products would be noticed in about two weeks time.
He maintained that the decision would not affect the prices of "Special steel".
Karim Aziz of FSL Steel in his reaction also welcomed the government's decision in the reduction of custom duty on re-rollable scrap from 25% to 10 percent.
He demanded of the government that Pakistan Steel Mill should also reduce the prices of steel and its products.
He further demanded of the government for 10 percent reduction in Sales Tax on steel products, which he said would help in lowering of prices of the quality steel in the country.
Khalid Javed of Ittehad Steel Islamabad also appreciated the government decision.
He said that this decision would help generate more economic activities in housing and construction sector.
Khalid Javed also demanded that duty on re-rolling scrap and billets should further be reduced so that the steel products used in the house and construction sector would be available to the people on cheaper rates.
He was of the opinion that the rates of 60 grade or high quality steel should be in the range of Rs 40,000 to Rs 45,000 per tonne.
He said that unless Pakistan Steel will reduce the prices of billets, the rate of (grade-60) will not reduced.
He demanded that to reduce the prices of Grade 40 steel products, which are used in houses and construction, the sales tax on billets should be reduced from 20 percent to 15 percent.
This, he said would help in reduction of Grade-40 steel to Rs 25,000 per tonne. A leading trader in re-rollable scrap in Karachi, Mohammad Amin Jafrani said that price of angle iron and round bars have declined from Rs 40,000 per tonne to Rs 37,000 per tonne on Thursday.
He said price of ship plates, which is a better quality for making iron bars and angle iron, has also plunged from Rs 45,000 per tonne to Rs 40,000 per tonne, showing a cut of Rs 5,000.
Talking of 15 percent cut in customs duty on scrap, he said that it will reduce prices by Rs 5,000 per tonne. He however, suggested that the duty should be reduced further keeping in view the rising prices of iron and steel products in the international market.
"When we have to reduce duties under WTO regime in 2006 why not slash them now when we are facing crisis", Amin Jafrani said.
He pointed out that construction sector will get the benefits of duty cut as the prices of angle iron and iron bar had shoot up by 100 percent in the last two to three months.
He said prices of angle iron and iron bars were 19,000 to 20,000 per tonne three months ago.
Kashif Ayub, a leading trader in bars, billets, angle iron and scrap said that the reduction in the duty on re-rollable scrap will reduce price of iron bars and tore steel.
Union of Small and Medium Enterprises (Unisame) Convenor Zulfikar Thaver said that customs duty on scrap and other iron and steel products should be abolished as rising prices have badly affected small and medium enterprises (SMEs).
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