ISLAMABAD: Local manufacturers have proposed to the Federal Board of Revenue (FBR) to immediately impose 30-40 percent regulatory duty on export of brass to regulate its exports and check a sudden rise in the price of this item.
Talking to Business Recorder here on Tuesday, Atif Iqbal, Executive Director Organisation for Advancement and Safeguard Industrial Sector (OASIS), said that the local sanitary fitting manufacturers of Gujranwala are apprehensive due to heavy export of brass these days from Pakistan resulting into abrupt increase in the prices of this basic raw material for their industry.
The FBR with the approval of the Economic Coordination Committee (ECC) of the Cabinet has imposed regulatory duty to generate additional revenue to the tune of Rs10-15 billion in 2017-18. Presently, SRO 594(I)/2009 had imposed 25 percent RD on the export of ferrous and non-ferrous waste and scrap of lead, lead bars, rods profiles and wire, waste and scrap of primary cells, primary batteries and electric accumulators, spent primary cells, spent primary batteries and electric accumulators, electrical parts of machinery or apparatus, not specified or included elsewhere.
The FBR can introduce a new entry in SRO 594(I)/2009 for imposition of the RD on the export of brass under the government policy to expand the scope of RD to check non-essential imports and exports.
Atif Iqbal said that there are more than 300 manufacturers in Gujranwala whose livelihood is dependent on this industry and thousands of families are associated with these manufacturers. Brass is also used by kitchen ware, surgical, copper wire, electrical goods, electrical switches and other small to medium sized industries largely based in Gujranwala.
He suggested that the government should immediately impose 30 to 40% regulatory duty on export of brass from Pakistan so that the export of this basic raw material may be regulated in the best interest of the country as well as local manufacturers.
He said that OASIS is working for the progress of domestic industry in Pakistan and supports all measures necessary for the betterment of local manufacturers.
The FBR should follow very basic principle to encourage import of raw materials and discourage export of the raw materials without value addition.
The local manufacturers of sanitary fittings have started production of state-of-the-art contemporary products which are not only popular in Pakistan but are also being exported out of Pakistan.
This industry has every potential to fetch foreign exchange through sizeable exports and prove to be one of the export sectors in non-traditional goods segment, the executive director OASIS added.