RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the government to review the recent imposition of regulatory duty on the import of more than 700 items.

Talking to traders on Thursday, RCCI President Zahid Latif Khan said the government must consult with stakeholders including trade bodies and the chamber of commerce before imposing the tax.

“A 20 to 45pc regulatory duty has been imposed on ceramic tiles, tyres and electronic goods which will lead to an increase in smuggling and under-invoicing. The local industry is unable to meet the growing demand and most of these items are not manufactured locally,” he said.

Anti-dumping duty was also increased up 38pc, which Mr Khan said will worsen the situation for the local industry.

He said the government claims the regulatory duty was imposed on luxury goods but some surgical goods, medical gloves, diapers for adults and chemicals and raw material used in medicines are also included on the list.

“The imposition of this duty will not help the government curb imports, it will just widen the gap between imports and exports,” he added.

The RCCI president urged the government to reduce taxes on manufacturing inputs, take immediate measures for improving the ease of doing business and lowering the production cost.

He said these concerns have already been communicated to the Federal Bureau of Revenue (FBR) chairman and that he expressed hope that the anomalies in taxes and duties will be removed as soon as possible.

He also urged the FBR to hold meetings with stakeholders to avoid the adverse impacts on consumer prices and cost of doing business for trade and industry.

Mr Khan added that the rise in trade deficit poses one of the biggest challenges for the government which can be overcome once stakeholders are involved in trade related decisions.

Published in Dawn, October 27th, 2017