ISLAMABAD: The documented steel sector has approached the Federal Board of Revenue (FBR) for immediate imposition of the regulatory duty on the import of wire rods to save the domestic wire rod industry.
According to a communication of the Pakistan Association of Large Steel Producers (PALSP), Abdul Razzak Dawood, Advisor for Commerce and Investments and chairman FBR, the association has filed an appeal for reversal of the decision of removal of RD on wire rods.
The association has expressed concerns regarding the removal of the regulatory duty (RD) on import of wire rods. In the budget 2021-22, the government removed regulatory duty on import of wire rods having PCT Codes 7227.9010 and 7227.9090 vide SRO 903(I)2021 dated 9 July 2021 by inserting clause (o) in paragraph 2B.
This exemption has badly damaged the local wire rod industry, which has sufficient capacity to produce and supply wire rods to the local users as per their requirement, it said.
The issue was discussed with the Commerce Ministry as well as the FBR in a meeting after the recent budget, wherein, after hearing the industry’s stance, the government assured that the measure will be reversed and the aforesaid exemption given on Pakistan Customs Tariff (PCT) Codes 7227.9010 and 7227.9090 shall be withdrawn in case it was detrimental for the local wire rod producing industry.
In order to save the domestic wire rod industry, it is requested to review the decision and withdraw/reverse the measure of removal of RD on wire rods. The timely support will help to save the local wire rod industry from closure, the association added.
Copyright Business Recorder, 2021