ISLAMABAD, Nov 09 (TNS): The Senate Committee on Finance,Revenue, Economic Affairs and Narcotic Control Thursday decided to take viewpoint of local manufacturers prior to taking final decisions on recently imposed Regulatory Duty on imports of Tyres imposed by Federal Board of Revenue (FBR) on the recommendations of Ministry of Commerce.
The committee also directed Federal Board of Revenue to withdraw its letter that has resulted in imposition of 10 percent regulatory duty on import of gas generators of 1250 KV or more capacity.
The committee which was chaired by Senator Saleem Mandviwalla, also directed the Federal Board of Revenue and Ministry of Commerce to have meeting with the importers of auto parts and come with solution on RD on auto-parts.
Earlier, while discussing the issue of RD on tyre imports, Senator Saud Majeed said that by imposing Regulatory Duty on import of tyres would help promote local Industry, so we must protect the local industry.
Senators Kamil Ali Aga and Mohsin Aziz were of the view that FBR should immediately withdrew the RD. Senator Kamil Ali Aga urged that the FBR should not impose RD on the goods that were already in pipeline, terming it unconstitutional, unethical and illegal measure taken by FBR. He was of the view that if FBR had to impose any such duties, it should be discussed in the parliament. Senator Mohsin Aziz said that the FBR should inform the importers before imposing such duties so that they may prepare themselves accordingly. He said that enhancement in RD would increase prices and would promote smuggling from porous boarders.
However, FBR informed the committee that border management system has been strengthened and there were no chances of rampant smuggling. The board also informed the committee that although the tyre was an essential item but it was being produced locally, so imposing RD would promote local production. The local manufacturers were working under-capacity so they would find a chance to enhance their production.
The representatives of Pakistan Tyre Importers and Dealers Association (PTIDA) informed the committee that Pakistan was not producing radial tyres, so by imposing RD on import would enhance price and would ultimately affect the common people. They informed that import of tyres increased due to China Pakistan Economic Corridor project.
The committee was also informed that imposing RD would have enhance per tyre cost of big vehicles from Rs4500 to Rs5000 while the price of cars tyres would increase by Rs500 to rs2000 on prices of tyres.
Meanwhile, representatives of Commerce Ministry informed the committee that the decision to impose RD was aimed at reducing import bill.
