PEMA protests against new levy

KARACHI: Pakistan Electronics Manufacturer’s Association (PEMA) on Tuesday raised concerns over some of the contents of SRO 1035 (I)/2017, which imposes regulatory duty on the imports of non essential items and urged for its withdrawal.

The association said the government should have allowed the industry to manage their production inventories before imposing the duty. The electronics manufacturers association urged the federal government to withdraw the regulatory duty on parts, components, and materials required by their industries.

It said though the objective of the duty was to reduce imports and raise revenues, such policies only encouraged under-invoicing, smuggling and other illegal practices. The net result of this decision would be reduced revenue collection, PEMA added.

Electronics and home appliances, such as refrigerators, air conditioners and televisions, were not classified as ‘luxury’ items globally. “Our products are classified as ‘consumer durables’, a necessity in context to modern lifestyle - urban or rural,” the PEMA said in a statement.  The association said these products were sold throughout Pakistan, from up-market urban high-streets for the elites to the small towns and villages catering to the masses.

It alleged that the federal government had taken the decision in haste, unilaterally and without consultation with any of the stake holders, especially the industry.  This measure reflects the ad-hoc culture of our policy makers and denies the industries of our country to have any level of trust and confidence on the affairs of the government, PEMA said.  “We are the importers of parts, components and materials required by our factories to manufacture these goods in Pakistan,” the PEMA statement said. Imposing regulatory duty on components, parts and materials was in absolute negation to the industrial policy of our country, and such measures would make local production unviable.