Tin Can Manufacturers Association and Pakistan Iron and Steel Merchant Association have demanded to declare import of raw material like electrolytic tin plate, tin free steel and easy open ends for the packaging industry duty-free in the next budget.
Deputy Chairman Tin Can Manufacturers Association, Arshad Iqbal talking to Business Recorder here on Wednesday said that government might levy five percent import duty on the same products for the commercial imports. He further said that the government should change the customs schedule and issue SRO immediately.
He said that the meeting strongly criticised the fiscal anomalies, industrial and trade barriers imposed by CBR and demanded of the government to provide relief. The associations relating to the packaging industry along with trade unions have become weary and tired of step motherly treatment of the Central Board of Revenue in past 5 years.
Numerous presentations, letters, appeals and recommendations have yielded no results. We manufacture tin cans and other metal packaging materials by importing 100 percent industrial raw materials, for industrial manufacturing and industrial supplies' he added.
Under the budget parameters, all concerned ministries like the Ministry of Finance, Commerce and production agreed to adopt cascading principle on customs tariff as guiding principle whereby all imports are classified as primary raw materials to be classified & imported at 0-5 percent import duty, secondary/components at 5-10 percent, finished products at 20-25 percent.
This practice encourages local manufacturing and its raw material to be classified as primary raw material to increase industrial activity and make local industry compatible & strong to address finished products imports which can be directly consumed by individuals.
He said that the raw material ie electrolytic tin plate of primary, secondary and tin free steel is 100 percent industrial item, which is being mistreated by CBR. This is exposed to highest rate of import duty ie 25 percent, 20 percent Sales Tax and 1 percent on industrial raw material.
This practice has seriously hampered the industry. This will close 60 percent of can manufacturing industries and render about 2000 persons jobless. Import of empty cans to the tune of 180 millions, import of empty aerosol cans and above all financial losses to packaging & SME sector which is back bone of the country.
All over the world, including South East Asian, Asian and neighbouring countries, this is an accepted industrial practice. Unlike plastic waste, tin plate secondary quality or waste, doesn't mean by any international standard, to be a recycled material thus there is a need to address these issues fairly and level-playing field be created by government at par with other packaging and industrial raw materials, he maintained.