The News reported that a local tinplate manufacturer has appealed the government to treat local and foreign investors equally and provide the domestically funded industrial projects the same protection that is provided to projects commissioned by foreign investors.

Mr Syed Waliullah Shah CEO of Siddiqsons said that as the manufacturer of prime quality tin plates in Pakistan his company faces unfair and unethical competition from import of scrap and waste tinned iron, secondary quality tinplates and highly under-invoiced prime quality tinplates.

He said that we are not afraid of competition but want the competition to be fair and ethical. As local investor the company has the right to duty protection provided to foreign investors.

When the government granted huge duty protection to the PTA plant established by a multinational the import of all manmade fibers such as viscous was subject to very high duty although PTA manufacture only polyester fibers that is different type of manmade fibers. In our case, the import of waste and scrap of tinned iron is allowed at zero duty from land routes which is used as an avenue to import secondary tinplates through wrong declaration.

He demanded that a duty of 10% be levied on the waste and scrap tinned iron and the minimum import price be fixed at USD 500 per tonne instead of the existing USD 275 per tonne. It has now been globally established and endorsed by all medical experts in Pakistan that only prime quality tinned plates could be used for packing food items such as ghee and edible oil.

Mr Shah said that since the import of secondary tinplates is allowed and the regulators lack capacity or the will to check these low quality materials it is being openly used for packing edible oil and ghee. The use of low quality tinplates is injurious to health. There is 10% duty on import of primary tinplates and 20% on secondary tinplates by commercial importers. However this duty is nullified through massive under invoicing by the commercial importers.

He suggested that the duty should be charged on weight basis instead of value and levy of PKR 10,000 per ton be imposed on the import of secondary tinplates and PKR 15,000 on the import of primary tinplates. This would resolve the issue of under invoicing.

He urged that the government to reduce duty on import of prime and secondary tinplates by the industrial manufacturers to zero percent and 5% respectively as has been allowed on the import of raw materials required for galvanized sheet.

(Sourced from www.thenews.com.pk)