KARACHI: The Pakistan Steel Melters Association (PSMA) has sought an increase in regulatory duty on steel items to 40 per cent from 15pc.

In a statement, it said that as soon as 15pc duty on import of steel items was imposed in December 2014, some five developments nullified the RD benefit.

Some of the events included levy of RD by the government on steel melters’ raw material (steel melting scrap) at five per cent, drop in billet prices by Chinese steel producers, fall of 50pc in Russian rubble price and depreciation of Ukrainian currency, which made the steel products cheaper. These steel giants are dumping their surplus steel items.

In view of drop in steel prices by the Chinese, Russian and Ukrainian steel producers, the PSMA in a letter to the Federal Board of Revenue on Feb 17 sought an increase in regulatory duty on steel items to 40pc from 15pc.

Prior to the levy of 15pc regulatory duty, the PSMA said it had originally requested for a levy of 40pc, but the government made a levy of only 15pc on steel billets, steel bars, wire rods etc. Most of the countries, it said, have levied special duties/levies from 30 to 110pc on various steel items to protect their jobs and investments.

The association also demanded levy of regulatory duty at five per cent on other competing sectors, like ship-breaking and imports so as to create a level-playing field.

Published in Dawn March 4th , 2015

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