—PSQCA approaches Supreme Court against nonpayment of dues by the industry for over a decade
ISLAMABAD: As the longstanding issue of marking fee, a levy on the use of the standard mark on a product, is yet to be resolved between Pakistan Standard and Quality Control Authority (PSQCA) and cement industry in the country, the amount of unpaid fee by the industry has swelled to Rs 1.5 billion.
According to sources at the Ministry of Science and Technology (MoST), the cement industry, while approaching various courts against the marking fee, was actually avoiding registration of PSQCA, despite being a mandatory item to be inspected for its quality and standard.
Talking to Pakistan Today, PSQCA Director General Muhammad Khalid Siddiq said his authority under the umbrella of MoST has recently approached Supreme Court of Pakistan against the nonpayment of the marking fee by the cement industry representatives for a long time despite decisions of lower courts in favour of PSQCA. “We were left with no option but to approach the Supreme Court for the recovery of the longstanding amount. We are already perusing some cases in Karachi. We are now committed to resolving this issue soon,” he said adding that the cement industry was asking the authority to reduce the marking fee or waive longstanding dues.
“We have made it clear to the cement industry that the marking fee cannot be reduced or changed till the issuance of revised SRO,” he said.
On the other hand, sources in cement industry claimed that the marking fee issue was in discussion with the PSQCA and the Ministry of Science and Technology at different levels. “The cement industry is ready to pay its outstanding marking fee and All Pakistan Cement Manufacturers Association (APCMA) has reconciled figures with PSQCA and the issue is likely to be settled in due course,” they said.
According to PSQCA officials, Peshawar High Court, through the decision of a case filed by a leading cement manufacturing company, has rejected the move against marking fee on the cement of annual production which later revised as ex-factory price. Marking fee on cement was notified at 0.15 per cent of annual production on January 13, 1986. It was revised as 0.1 per cent ex-factory price with effect from April 1, 2008, under SRO (KE)/2008 dated February 27, 2008. The fee has been defined as a levy on the use of the standard mark on a product.
However, they claimed, the cement manufacturers were demanding the fee set on per ton of cement dispatched besides withdrawing over a billion rupees worth dues they owed to PSQCA. According to them, the change of fee structure could, however, create problems to the authority as other sectors would also demand the same concession. The payment of dues was also needed for renewal of the license issued by PSQCA. The authority grants the license for use of PS mark on the product and accordingly, manufacturers are levied with marking fee. This mark is a symbol of conformance of the product or process to relevant Pakistani standards.
According to the sources, the minister of Science and Technology had held a meeting in 2015 in which it was decided to settle the marking fee issue on priority basis. Following the decision, a meeting with representatives of M/s Attock Cement, M/S Lucky Cement, M/s Cheerat Cement, M/s Askari Cement and M/s Power Cement was also held in Karachi but despite a deliberation on the fee matter, the issue remained unresolved.
