KARACHI: The government should reduce taxes on paper and raw materials if it wants to raise exports from paper and printing industry, said a business leader on Saturday.
“It is astonishing that around 49 percent duty and taxes have been imposed on raw materials while duty on paper is the highest in the world,” said SM Muneer, chief executive at the Trade Development Authority of Pakistan, while inaugurating a three-day exhibit organised by the Pakistan Association of Printing and Graphic Arts Industry (PAPGAI).
“This issue is hurting our industry and it will be addressed on priority basis…We will support the value added industry,” Muneer said.
“The government should ensure to cut taxes.”
He said the printing industry is the second largest local industry with a volume of around five billion dollars.
The size of the world market is around $980 billion, he added.
Imports of paper and paper board rose 21 percent to $491.145 million in the last fiscal year of 2014/15, said data of the Pakistan Bureau of Statistics.
Muneer said the event will pave the way for the development of the printing and graphic arts industry as it provides a single platform for local as well as global players.
Ismail Memon, chairman at PAPGAI said the association has been organising the show since the last 25 years with the purpose to gather all the stakeholders and industry players under one roof.
“Pakistan has huge untapped potential as our per capita usage of paper is around 8 kilogram while in India it is around 12kg,” said Memon.
This consumption rate in Sri Lanka is 19kg, in China 75kg and in USA it is around 229kg.
He added that similarly the usage of flexible printing per capita in Pakistan is less than four kg while in UAE it is around 16kg, South America (22kg), Europe (90kg) and North America it stands at 145kg.
Memon said the government slaps 51 percent taxes on paper and
raw material of flexible packaging, “which is the biggest threat for the domestic industry as publishers are getting their books printed from abroad.”
“The government should provide relaxation on taxation and duties for the growth of the industry, which is already providing employment opportunities to around two million people, working in 15,000 printing presses and binding houses across the country,” he said.
PAPGAI chief said if the government gives a relief to the industry it has a potential to fulfill the local demand of the country and will earn precious foreign reserve through exports.