FPCCI: (15% regulatory duty will strengthen monopoly of steel melters)

ISLAMABAD: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Mohammad Adrees on Monday suggested Finance Minister Ishaque Dar to waive the newly imposed 15% regulatory duty on imported MS steel billets, as it is a raw material to produce bars like shredded steel scrape and steel plates.

In a statement, he said steel melters and ship breakers who are already enjoying subsidies of more than Rs 20 billion as their sales tax is under the slab of 10% and they are also gaining the benefits of reduction in international prices to the tune of 25% of shredded steel scrap will be strengthened to establish monopoly on the supply of raw material (steel billets) to the steel re-rollers at their own prices.

The imposition of 15% regulatory duty will only affect the steel re-rolling mills by hampering their production due to high cost, he added.

He explained that the steel re-rolling mills normally import MS steel billets (raw material) to manufacture the good quality steel bars of Grade 60 which is the normal requirement in the construction industry.

He said steel melters also produce their own steel billets (raw material) to produce their own finished steel bars of Grade 60. They can not sufficiently supply steel billets to the steel re-rolling industries.

He said the local steel melters provide raw material to the steel re-rollers at high prices which are normally not compatible to the steel re-rollers which ultimately compel them to import at lesser price as compare to local price.

He said requested the government to waive 15% regulatory duty on the imported MS steel billets of steel re-rolling industries. He also recommended that the government should depute some officials to meet Pakistan Steel Re-Rolling Mills Association in this regards.

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