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ICCI demands

reduction in

duty on steel

ingots, billets

ISLAMABAD: Khalid Javaid, president, Islamabad Chamber of Commerce and Industry Saturday urged the government to reduce central excise duty on steel ingots and billets to save the steel melting industry from collapse.

In a statement, the ICCI chief strongly supported the demands presented to the federal government and the Central Board of Revenue (CBR) by Pakistan Steel Melters Association and called upon the government to take measures for steering the industry out of crisis.

He said that imposition of the central excise duty (CED) at the rate of 15 percent on ingots and billets in the budget 1994-95 had created immense difficulties for steel melting furnaces. On various representation by the Pakistan Steel Melter Association, Prime Minister Benazir Bhutto had constituted a high level committee under the chairmanship of federal minister for industries and production to review the entire system and recommend a suitable solution to the problems faced by the steel melter industry.

The Committee recommended for 1995-96 that CED at the rate of 10 percent should be imposed on all sectors of steel and an additional clause was incorporated for furnaces to pay CED. On 1200 units per ton of electricity.

He said that Pakistan Steel Melter Association has regretted that the recommendations of the committee were not implemented in letter and spirit and CED at the rate of 10 percent on 1200 units per ton was imposed on furnaces but only 5 percent was imposed on ship plate. The CBR on the protest from ship breakers was further compelled to revise the levy of duty to only on 60 percent ald also on LDT instead of ad valorem.

Khalid Javaid said that on this decision of CBR, the steel melters industry was once again left high and dry and unless a revision was made, furnaces sector would be compelled to close down their operation.

He called for urgent measures to save the steel melter industry from crisis. He suggested that CED should be reduced to 5 percent and based on 1400 units. If 10 percent CED is to be maintained then it should be collected on 1795 units per ton to bring it closer to ship plate. He further proposed after adopting any one of the above measures, the clause of "50 percent payable on value" be done away with so that a uniform system was introduced and the prevalent anomaly removed.-APP