ISLAMABAD (June 12 2004): A major reduction has been proposed in the import duty on steel coils, steel billets, MS bars and polypropylene/polyethylene.
It is reliably learnt that the government would reduce customs duty on the import of steel coils from 25 percent to 10 percent, steel billets, 25 percent to 5 percent, MS bars, 25 percent to 10 percent and duty on polypropylene and polyethylene would be brought down from 20 percent to 10 percent.
Sources said that this major reduction in duty would benefit several industries engaged in the import of these products. Reduction in duty on the import of steel coils, steel billets and MS bars would effectively check the rising price of steel products in the country.
This is for the first time that such a major reduction has been proposed in the duty on steel products to offset the pressure of price hike in the international market.
A few months back, China has picked up huge quantity of iron and steel raw materials from the international market for production of steel and iron products to be used in mega water and communication projects being initiated in that country.
Now, reduction in the duty structure would encourage the domestic industry to invest more in the steel sector.
The amendments would be made in Pakistan Customs Tariff 2004-05 in the budget.