Zero Or Low Duties On Raw Materials Imperative To Enhance Exports: Lahore Chamber Of Commerce And Industry

Zero or low Custom Duty (CD) on all raw materials for export-oriented industries as well as elimination of Regulatory Duties (RD) and Additional Custom Duty (AD) on raw materials is imperative to enhance country's exports and enable the local industry to be more competitive

LAHORE, (UrduPoint / Pakistan Point News - 21st Jan, 2020 ) :Zero or low Custom Duty (CD) on all raw materials for export-oriented industries as well as elimination of Regulatory Duties (RD) and Additional Custom Duty (AD) on raw materials is imperative to enhance country's exports and enable the local industry to be more competitive.

Lahore Chamber of Commerce and Industry (LCCI) Irfan Iqbal Sheikh suggested this in a meeting with a group of exporters here at Lahore Chamber on Tuesday. He added, "Exports bring in foreign exchange, enhance government revenues and generate employment, therefore, government should control those factors hampering export growth".

He elaborated that Custom Duties (CD) on intermediary products for export oriented industries should be reduced giving space to industry to import quality materials, components and machinery at the same duty rate, it imports under various FTAs (Free Trade Agreements). He observed that 17 per cent Sales Tax was high and must be reduced to ensure local industry's competitiveness.

Irfan Iqbal also called for revamping taxation system with competitive Tariff Regime for Industrialization; tax holidays for new entrepreneurs; tax exemptions for BMR; reduction in frequency & number of taxes and broadening of tax base by bringing all non-taxed sectors into tax system.

He suggested that commercial sections of Pakistan embassies abroad should work more efficiently and prepare fresh market research reports in their respective countries and send those reports to all the chambers of commerce in Pakistan, besides maintaining constant liaison with Pakistani manufacturers and importer.

Pakistan's overall export revenues were hovering around US$ 24 billion despite having GSP Plus status mainly because of high cost doing business when compared with regional competitors including Bangladesh and India, he said and asserted that though Pakistan's ranking in Ease of Doing Business is 108 which has improved considerably in recent times, a lot has yet to be done on this count.

He said that as the countries around the world are moving swiftly towards smart regulations, electronic portals, one window approvals and Pakistan would have to follow the course as it would not only facilitate export-oriented industry but also improve Pakistan image as best investment destination.