20000411

Sukkur Chamber

suggests NTC to

determine tariff

protection level

NAYYAR ZUBERI

KARACHI: The Sukkur Chamber of Commerce and Industry (SCCI) has proposed that the National Tariff Commission carry out a study determining the required level of protection vis-a-vis the actual margin available to local industry under the revised tariff structure.

The chamber stressed that the tariff structure be so rationalised as to provide a reasonable degree of protection to Pakistani industry keeping in mind that under the WTO regime of trade liberalisation, and Pakistan's commitment to IMF to bring down the top tariff to 35 percent.

It is imperative the chamber said, that the tariff rates should rise with the progressive stages of manufacturing with a view to encouraging value addition. The anomaly of duty structure with some finished goods being allowed at lower rates than their inputs should immediately be removed.

The government while reducing customs tariffs should guarantee sufficient protection level to local industry, otherwise a large number of factories may close down. So the chamber has suggested that the import of all primary raw materials, (raw/unprocessed) not locally produced be allowed at zero rate of duty. Duties and taxes on industrial machinery, not manufactured locally, should also be abolished, especially for backward areas like Sukkur site.

The chamber demanded that the import of all secondary raw materials, semi-finished, intermediate goods be allowed at duties ranging from zero to 20 percent. Those secondary/intermediate materials not available or produced in Pakistan should fall in the lower slab.

The chamber demanded that lowering of the cost of electricity by reducing the duties on furnace oil and by getting more electricity from IPP's.