Treet Corporation seeks tax discount on imported raw material

ISLAMABAD: Treet Corporation Limited has requested the National Tariff Commission (NTC) to reduce taxes and withdraw duties on imported carbon steel strips, which are key raw materials used in manufacturing of razor blades. 

The commission on Friday sought feedbacks from all the stakeholders on the request.

Treet Corporation, the sole manufacturer of double edge shaving blades and safety and disposable razors in Pakistan, import cold rolled steel strip for manufacturing of shaving blades/razors, having thickness of 0.0098mm and width of 22.2mm.

However, carbon steel strips are considered under the general category of cold rolled steel coils – having 600mm width – like iron steels and plates of alloy steel of the Pakistan Customs Tariff (PCT).

Lahore-based Treet Corporation, in its application to the NTC, asked for reduction in custom duty on carbon steel strips having width of 22.2mm and thickness of 0.098mm to five percent from 10 percent. The applicant said the strips are locally manufactured. 

The company also demanded abolishing of regulatory duty of 17.5 percent imposed on carbon steel strip with width of 22.2mm and thickness of 0.098mm. 

It further requested the commission to remove tariff anomaly in the duty structure applicable to the double edge shaving blades. 

“Presently, the import duties on import of the finished product are 25 percent (20 percent custom duty plus five percent regulatory duty), whereas, import duty on import of main raw material is 27.5 percent (10pc customs duty and 17.5pc regular duty),” it said. 

The applicant sought creation of a separate PCT sub-heading at eight digit level to classify carbon steel strip having width of 22.2mm and thickness of 0.098mm used in the manufacturing of shaving blades.

The NTC, through a public notice, announced an inquiry and sought views, suggestions and proposals from all the parties having an interest in the business relating to or associated with the manufacturing, marketing, exports, imports and use of carbon steel strips. 

 “All parties having an interest in the business relating to or associated with the imports, manufacturing, marketing and use of carbon steel strips are hereby advised to get themselves registered with NTC latest by February 16 for participation in the public hearing by providing names of the participants with their telephone numbers and fax numbers to the secretary NTC,” it added.   The notice said a public hearing is scheduled on February 18.