ISLAMABAD, Jan 21: The ministry of finance has rejected the proposal of the CBR seeking levy of five per cent regulatory duty on import of re-rollable scrap.

An official told Dawn on Saturday that the CBR had proposed the levy on re-rollable scrap following the demand of the local steel industry.

The local manufacturers of billet and steel bars approached the CBR that the massive increase in the import of re-rollable scrap had resulted in reducing their sales. The scrap is used in the production of steel rods, which is a major raw material used in construction.

According to the official, the finance ministry in a meeting headed by Advisor to prime minister on Finance, Salman Shah, rejected the proposal on the ground that the local price of the commodity will be increased many-fold following the levy of duty.

The price of steel rods rose to around Rs2,800 per ton, which later came down to around Rs1,200 to Rs1,500 per ton, following the decrease recorded in the international prices of the commodity.

According to the official, the steel rods would be used in large quantities in the re-construction work in the nine districts of Azad Kashmir and the NWFP affected by the recent earthquake.