PEMA rejects the regulatory duty on imports straight away – Research Snipers

PEMA rejects the regulatory duty on imports straight away

regulatory duty

The Government of Pakistan through its Notification dated sixteenth October 2017 has forced Regulatory Duty on several things including electronic equipment and machines.

Pakistan Electronics Manufacturer’s Association (PEMA), in an announcement issued minutes prior, straight away rejected the new duties.

The announcement said that the Federal Government has taken this choice in scurry, singularly and without consultation with any of the partners, particularly the business. It said that new duties mirror the ad-hoc culture of our policy makers and precludes the businesses from securing our nation to have any level of trust and certainty on the undertakings of their Government.

“If at all the imposition of this Regulatory Duty was inevitable, the relevant authorities should have rationalized the items to be selected, the percentage of Duty to be imposed should have been cascaded and adequate time for industries to hedge their exposures and manage their production inventories should have been given”, said the association members.

The regulatory duty imposed by the government seems to point out the ad-hoc decision making

The announcement said that the genuine goals of the Federal Government in imposition of the Regulatory Duty has been conveyed to be decrease of imports and raising of extra revenues for the Government exchequer.

“However, the relevant authorities have failed to incorporate lessons from previous such measures. In practicality, such policies only encourage under-invoicing, smuggling and other illegal practices and the net result is actual reduction of revenue collection, a complete failure in achieving the desired objectives”, read the presser.

It said that electronics and Home Appliances items, for example, Refrigerators, Air conditioners and Televisions are not named “luxury” things universally. These items are delegated “Consumer Durables”, a need in setting to modern day way of life – urban or country.

“This is evident from the fact that our products are sold throughout Pakistan, from up-market urban high-streets for the elites to the small towns & villages catering to the masses. Hence, inclusion of these products in the list of “luxury items” is incorrect and erroneous”, the association protested.

Associate body said that their processing plants import parts to manufacture hardware goods in Pakistan. These plants create gigantic measures of taxes for the administration and give expansive scale work to the general population of our nation.

“Imposing Regulatory Duty on components, parts and materials is in absolute negation to the industrial policy of our country, as such measures shall make local production unviable”, they explained further.

“In light of the above, we strongly urge the Federal Government to withdraw with immediate effect the Regulatory Duty imposed on parts, components and materials of our products required by our industries”, requested the association.

Read: Import duties see a rise of 50 percent

Image via Martin Dixon