Steel makers demand 40pc levy on import

KARACHI: Steel manufacturers on Monday demanded of the government to raise regulatory duty on import of steel billets, bars and wire-rods by another 25 percent to 40 percent to prevent their dumping in Pakistan, a statement said on Monday.
Pakistan Steel Melters Association (PSMA) and large scale re-rollers, in a join press statement, said the existing 15 percent duty on these items has become ineffective because of the increased dumping margins by foreign manufacturers – mainly in China – cut in customs valuations and falling steel prices in international markets. Oversupply of steel in the world is making the governments to give subsidies to protect their industries.
“We must take a stand against unfair trade practices and provide an environment of fair competition by imposing 40 percent duty because our steel industry is a matter of strategic national interest,” said a member of the PSMA executive committee.
“The 15 percent regulatory duty levied in January 2015 was a resounding success for all the stakeholders. After its imposition, the government has gained billions of rupees in revenue,” he said. “Over 80,000 tons of steel billets were imported since the levy.”
The statement said PSMA and LSR represent majority of Pakistan’s steel industry, having a processing capacity of over four million tons/year, an investment base of more than Rs100 billion and annually contributing over Rs20 billion to national exchequer.
A re-roll mill said: “Majority of the re-rolling mills are dependent on steel from ship breaking industry because they cannot process any other raw materials. If regulatory duty of 40 percent is not levied on billets, ship breaking (Balochistan’s largest industry) will come to a standstill and the downstream re-rolling mills will be deprived of raw materials.”
The increase in levy will further help local manufacturing expand. Local manufacturers purchase hundreds of materials from the market, supporting other businesses, paying additional taxes and supporting thousands of jobs.
Vendors and employees alike benefit financially and spend this money in the local market place, creating a cycle that is extremely beneficial for the entire economy, the statement said.