LCCI slams FBR for slapping duty without consultation

Urges govt to withdraw the decision, saying it will hit exports

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has slammed the Federal Board of Revenue (FBR) for imposing regulatory duty in the range of 10% to 50%, fearing dire economic consequences of the decision, which was taken without consulting the stakeholders.

LCCI President Malik Tahir Javed and Senior Vice President Khawaja Khawar Rasheed expressed dismay at the FBR’s decision in a statement issued on Wednesday.



They said FBR authorities did not heed the chamber’s calls for consultation before the imposition of duty. They voiced fear that the regulatory duty on various essentials would encourage smuggling of goods like chemicals and tyres, which would adversely affect economic base of the country.

They believed that the duty would lead to an increase in prices of even necessary raw material and other essential goods for the trade and industry. Reaffirming their support for reduction in the import of luxurious goods, the LCCI office-bearers demanded that imports of those raw materials and goods should not be hampered that were not being manufactured in the country. “The FBR must withdraw the decision and convene a meeting of  stakeholders to get their feedback,” they suggested.

They warned the FBR that if it moved to implement the recent decision, it would struggle to meet revenue targets.



The LCCI high-ups argued that the regulatory duty should be imposed on products where the local industry needed protection, which was important. However, the business community failed to understand  why the duty was being slapped on the import of raw material and other goods which were either not manufactured locally or produced in very small quantities compared to their imports.

They urged the government to consider the fact that the industry used raw material to produce goods for exports and the imposition of heavy duty would not only adversely impact the industry, but it would also hit exports.

Published in The Express Tribune, October 19^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.