Author: Paul Ploumis17 Mar 2015 Last updated at 03:27:33 GMT
ISLAMABAD (Scrap Monster): As per reports, Pakistan is most likely to impose 15% regulatory duty on imported hot rolled products and pipes. The proposal to this effect by the country’s Ministry of Industries and Production has now been approved by the Federal Board of Revenue (FBR). In addition, a fixed sales tax of PKR 5,600 per tonne will be levied on billet and re rollable scrap imports.
The federal government had recently imposed regulatory duty on wide range of products excluding hot rolled products. A regulatory duty of 15% was imposed on imports of billets, bars and wire rods. Also a duty of 5% was imposed on imports of cold rolled coils and galvanized sheets. The exclusion of hot rolled products had adversely affected the sales of Pakistan Steel Mill (PSM)- the only HR producer in the country.
The imposition of duty is intended to protect the domestic industry from the cheap imports from China. By way of endorsing the regulatory duty on these products, the FBR aims to revive the domestic steel industry in the country and generate additional revenue. The decision follows implementation of duty on imports of Chinese products by several other countries including Turkey, EU, USA, Philippines, Vietnam and Malaysia. Some other countries had also implemented non-tariff barriers to block the increased imports from China.
PSM aims to produce at least 500,000 tons of HR products, 72% of the estimated annual HR demand of 700,000 tons. Moreover, the company plans to raise its production capacity from 50% to 77% by April 2015.