Karachi: A local newspaper reported Pakistan Association of Parts and Accessories Manufacturers (PAAPAM) Chairman Mashood Ali Khan urged the government to put an end to regulatory duty on import of industrial steel materials.
Khan said regulatory duty on import of industrial steel materials had left the automobile industry unable to compete, whose removal had been sought from the government since the last two years.
He added “This is the third year of this regime. By increasing tariffs on import of raw materials, domestic industry was made uncompetitive. For example, 30%-35% additional tariff on steel may have helped some inefficient units, but it considerably increased the costs of the value added sectors producing fine quality auto parts and engineering products,”
Regulatory duty on import of industrial steel materials was enforced in 2015 at a rate of 5pc to 15pc respectively, but rose to 15pc to 35pc from next financial year.
According to PAAPAM Chairman, the local steel industry was offered protection from levy of regulatory duty, which mainly manufactures steel for the construction sector.