ISLAMABAD: The federal government’s Tariff Policy Board (TPB) headed by Commerce Minister has rejected a proposal of Ministry of National Food Security and Research (MNF&R) regarding imposition of Regulatory Duty (RD) on import substitution to protect local growers of oilseed, well informed sources told Business Recorder.
The decision was taken at a recent meeting of TPB wherein different proposals with respect to tariff rationalisation came under discussion.
Joint secretary (Tariff Policy) requested Food Commissioner-1(MNFSR) to present the proposal to the members who proposed that the imposition of Regulatory Duty (RD) to protect the Minimum Intervention Price (MIP) of Rs. 7,000 /40 Kg for local oilseed growers is important for Pakistan to become not only self-sufficient but also to become a net exporter.
It was added that the benefit of the fall of international prices may be passed on to the local growers so that they become competitive in the market, and eventually start exporting edible oils.
The proposal of MNFSR was not approved by the TPB as this would lead to further escalation in the edible oil prices in the local market. The Minister, Syed Naveed Qamar, suggested that MNFSR may take the proposal to ECC or any other such forum where high level participation from major public sector stakeholders may consider the issue. TPB will reconsider the proposal if it is endorsed and recommended by the ECC or any other forums.
According to sources, Director National Tariff Commission (NTC) presented proposals received from different sectors/ industries for review of RDs which have already been discussed in the Sub-Committee meetings.
After detailed deliberations, TPB approved viewpoints of all members in the light of proposals. The decisions included reduction of RD on Disodium Carbonate {PCT 2836.2000) to 10% and imposition of 5% RD on Filament Yarns (PCT 5402.3300, 5402, 4600, 5402.4700, 5402.5200).
It was further added that any proposal regarding review of RD increased under SRO 1571(l) /2022 of August 22, 2022 may not be considered as the decision has been taken after detailed deliberations.
The chair also directed that FBR may not suggest any extension in the SRO-1571 after its expiry. Further, it was also decided that decisions made by TPB may not be tabled for reconsideration for at least 06 months and that too if any substantive development by the applicant is pointed out.
The sources said in order to discourage the inefficient use of energy, TPB agreed in principle with the proposal of Power Division for imposition of RDs to 100 per cent on only those proposed items (including Tungsten, Filament, Caps, Lead wires and Stem) where instance of dual/ multiple usage by other industry is insignificant; however, this will be subject to validation/ verification of data by MoI&P/ FBR.
The National Tariff Policy (NTP) 2019-24 stipulates that all proposals for levy, amendment or removal of tariffs shall be examined at the National Policy Centre and after approval of the Tariff Policy Board (TPB) shall be submitted to the Cabinet or Parliament, as the case may be, for consideration.
Copyright Business Recorder, 2022