APCMA demands increase in custom duty on cement

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The All Pakistan Cement Manufacturers Association (APCMA) chairman has suggested that the present meagre 1 per cent custom duty on the import of cement should be enhanced to 25 per cent 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 higher-ups in the government.

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 the 15th of this month.

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 Rs 1 billion per annum provided the government stops the import of 500,000 tons of cement from Iran,” reasoned the APCMA chairman.

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 per cent of the capacity. The industry therefore demands immediate action by the government to increase custom duty on imported cement from 1 per cent to 25 per cent so that the idle capacity available in the country could be utilized paving the way for long-term economic development and increased earnings to the national exchequer.