Chairman of All Pakistan Cement Manufacturers Association (APCMA) Muhammad Ali Tabba has suggested the government that the present meagre one percent customs duty on import of cement should be enhanced to 25 percent to discourage the imports. Inaction against mis-declarations on imports and revenue loss through smuggling is not only affecting the government and its revenue generation efforts but also promoting corruption at clearing stage which goes rampant inflicting huge damage to the local industry as well, he said in a communique to the concerned government officials.
As per the information available, 34,000 tons Iranian cement was imported during the month of April and about 20,000 tons of different Iranian cement brands have been imported till May 15, 2015. Considering the recent imposition of anti-dumping duty on Pakistani cement by South Africa, he added, Pakistani government should also follow the same in order to stop the influx of Iranian cement in the country damaging its domestic industry and shaking the confidence of investors.
The importers of Iranian cement declare less quantity to save duties which puts local industry at huge disadvantage and level playing field is denied. The local industry is subject to duties even on raw material, spare parts as well as packing material which, increases the cost of doing business in Pakistan.
"The direct revenue to national exchequer in the form of excise duty and sales tax can be increased by approximately one billion rupees per annum provided the government to stop the import of 500,000 tons of Iranian cement," APCMA chairman said. He said this would be in addition to the revenues collected by the government in form of royalties and taxes of limestone, clay and other raw materials used in the manufacturing of cement as well as economic developments due to direct and indirect employment to people living in different areas of the country.
"It is the prime responsibility of the government to protect the local industry that has invested billions of rupees in the country and has substantial share in the revenue to national exchequer in form of duties, and taxes," he said. Against the installed capacity of 46 million tons per annum, the domestic despatches count for only 26 million tons or 57 percent of the capacity. The industry therefore demands immediate action by the government to increase customs duty on imported cement from one percent to 25 percent so that the idle capacity available in the country can be utilised paving the way for long term economic development and increased earnings to the national exchequer.