LAHORE: Federal Board of Revenue (FBR) slammed for imposing 10 to over 50 percent Regulatory Duty (RD) and importers feared of dire economic consequences of this decision taken without consulting the stakeholders.
LCCI President Malik Tahir Javed and Senior Vice President Khawaja Khawar Rasheed, while showing dismay on FBR’s move, said that the Lahore Chamber of Commerce & Industry was calling for consultation before imposition of Regulatory Duty but FBR authorities did not bother and imposed the decision.
They said that imposition of Regulatory Duty on various essentials is nothing else but to encourage smuggling of goods like chemicals and tyres that is already hollowing the economic base of the country.
They said that Regulatory Duty will increase the prices of even necessary raw materials and other essentials for the trade and industry. They said that the Lahore Chamber of Commerce & Industry supports reduction of luxurious item’s imports but also demands that imports of those raw materials and goods should not be hampered that are not being manufactured in the country.
“Federal Board of Revenue must withdraw the decision of implementation of Regulatory Duty and convene a meeting of the stakeholders to get their feedback”, the LCCI office-bearers demanded and said that FBR would be struggling to meet its revenue targets if it continuous with the recent decision.
They said that principally Regulatory Duty is imposed on such products where local industry needs protection.
The LCCI understands that protection of local industry is important for any state as it provides employment opportunities and contribute sizeable amount of revenue to national exchequer. But business community fails to understand that why Regulatory Duty is being imposed on import of raw materials and other goods (especially Chemicals used in industry) which are either not locally manufactured or produced in very small quantity as compared to their imports.
The LCCI office-bearers said that government authorities must consider the fact that industry uses raw materials to produce goods for exports. Regulatory Duty would not only adversely affect the industry but also hit the exports.
They said that the FBR should withdraw the imposition of Regulatory Duty and must get feedback from the stakeholder to ensure industry friendly decision.