Over 60pc taxes, duty on imported paper: PAPGAI

KARACHI: Pakistan Association of Printing and Graphic Arts Industry (PAPGAI) has resented tariff structure on the printing and publishing industry, saying the sector could not flourish with over 60 percent taxes and duty on import of its basic raw material, paper.

Talking to media on second day of PrintPak Exhibition at Karachi Expo Center on Monday, PAPGAI chairman Aziz Khalid said taxes and duty on the import of paper was considerably higher in Pakistan than other countries, despite “the sector indirectly contributed 6-7 percent in the country’s exports,” he claimed.

“Tariff structuring is such that there is minimum taxation and duty on printed material in comparison to over 60 percent duty and taxes on imported raw material, paper,” said Khalid. As a result, he added, the industry loses the opportunity of acquiring and serving the domestic publishing sector as cheaper solutions are found in counties like China and Malaysia.

“The domestic publishers sourced over 7,000 tonnes of books in 2018, which is turning out to be an alarming trend for the industry.” He stated that PAPGAI had also explained the anomaly on forums like National Tariff Commission, Senate and National Assembly Standing Committee, Federal Board of Revenue, and ministry of Commerce.

“The industry has great potential of not only providing employment opportunities, but it can directly contribute to the country's foreign exchange if prompt rationalisation of tariff and duty structuring is initiated.” He added that the literacy rate of Pakistan is very low where access to education costly due to high prices of text books. “This pricing can be rationalised if right government policies are adopted to reform the tariff and duty structure applicable on paper.”

According to PAPGAI, Pakistan falls within the world’s lowest paper and paperboard consuming countries, with current consumption in the country close to 2 million tonnes per annum, which works out to less than 10kg per capita consumption against the world average per capita consumption of 57kg while in developed economies over 250kg.