The Government of Pakistan through its Notification dated 16th October 2017 has imposed Regulatory Duty on hundreds of items including electronics equipment and appliances.
Pakistan Electronics Manufacturer’s Association (PEMA), in a statement issued moments ago, straight away rejected the new duties.
The statement said that the Federal Government has taken this decision in haste, unilaterally and without consultation with any of the stake holders, especially the industry.
“If at all the imposition of this Regulatory Duty was inevitable, the relevant authorities should have rationalized the items to be selected, the percentage of Duty to be imposed should have been cascaded and adequate time for industries to hedge their exposures and manage their production inventories should have been given”, said the association members.
It said that new duties reflect the ad-hoc culture of policy makers and denies the industries of the country to have any level of trust and confidence on the affairs of their Government.
The statement said that the real objectives of the Federal Government in imposition of the Regulatory Duty have been communicated as being the reduction of imports and raising of additional revenues for the Government exchequer.
“However, the relevant authorities have failed to incorporate lessons from previous such measures. In practicality, such policies only encourage under-invoicing, smuggling and other illegal practices and the net result is actual reduction of revenue collection and a complete failure in achieving the desired objectives”, read the presser.
It said that electronics and Home Appliances products such as Refrigerators, Air conditioners and Televisions are not classified as “luxury” items globally. These products are classified as “Consumer Durables”, a necessity in context to modern lifestyle – urban or rural.
“This is evident from the fact that our products are sold throughout Pakistan, from up-market urban high-streets for the elites to the small towns & villages catering to the masses. Hence, inclusion of these products in the list of“luxury items” is incorrect and erroneous”, the association protested.
Association members said that their factories import parts to manufacture electronics goods in Pakistan. These factories generate huge amounts of taxes for the government and provide large scale employment to the people of our country.
“Imposing Regulatory Duty on components, parts and materials is in absolute negation to the industrial policy of our country, as such measures shall make local production unviable”, they explained further.
“In light of the above, we strongly urge the Federal Government to withdraw with immediate effect the Regulatory Duty imposed on parts, components and materials of our products required by our industries”, requested the association.