Pakistan Chemical Manufacturers Association (PCMA) has called for withdrawal of regulatory duty from essential chemicals, being used for production of value-added products.
The chief executive officers (CEOs) of the chemical industry and executive committee members of PCMA held a meeting at PCMA head office to discuss the crisis created by the levy of regulatory duty on chemicals.
The meeting was jointly conducted by PCMA Senior Vice Chairman Zafar Mahmood and Vice Chairman Abdul Qayoom, according to the Association's Media Coordinator here Tuesday.
They held discussion on regulatory duty and prepared a fresh proposal bearing 14 HS codes related with the essential chemicals like varnishes, cocoamidopropyl betain, pigment thickener and glass microsphere for highway safety road.
The proposal had declared those items as the basic industrial raw materials to be used for production of various value added products like textile chemicals, paints, coatings, emulsions, paper chemicals and similar other products.
They also expressed dissatisfaction over Federal Board of Revenue (FBR)'s approach towards PCMA proposal regarding withdrawal of regulatory duty.
PCMA Senior Vice Chairman Zafar Mahmood observed that imposition of regulatory duty on the imported raw materials had increased the cost of production of the member companies, therefore, he had appealed to the FBR chairman for immediate withdrawal of regulatory duty on imported chemicals so as to keep the chemical products competitive with imported items of similar categories.
Earlier, PCMA Secretary General Iqbal Kidwai informed the participants that local chemical industry was in crisis after levy of regulator duty on different chemicals a few months back.
He said PCMA had taken an immediate review of the situation and submitted a comprehensive proposal to the FBR that reduced duty on a few items, but total removal of the duty was in demand.