Soap industry demands stop to smuggling

The soap industry has implored the government to take stringent actions against under-invoicing and the smuggling of imported finished soap and detergent, urging the discouragement of any imports of soap, soap noodles, and detergent into the country.

Manufacturers contended that the escalating and debilitating inflation has driven up soap prices, rendering them beyond the purchasing capacity of most consumers in the local market. They also underscored the higher interest rate, a significant hindrance to the genuine growth of the entire industry. Claiming advance taxes to meet tax targets set by the Federal Board of Revenue, especially in the presence of substantial refunds, exacerbates the financial strain on the industry.

“The government should urgently and immediately undertake the following actions to address the issues faced by the soap industry: scaling down the high rate of duty on basic raw materials for soaps, curbing under-invoicing and the smuggling of imported finished soaps and detergent, ensuring maximum facilities for export, reducing skyrocketing tariffs of gas and electricity, and providing proper and required energy to the soap industry,” declared Pakistan Soap Manufacturers AssociationChairman, Syed Anwer Suhail Razvi. He highlighted that the industry contributes over Rs100 billion to the national exchequer annually while exporting goods worth $20 million each year.

CEO of Zaki Industrial Corporation, A Abdullah Zaki, confidently stated, “The country is self-sufficient in terms of the production of all types of soaps and detergents. Currently, many units in the organised sector manufacture quality soap and detergent, successfully competing with multinational brands. Under these circumstances, there is no need to import any soap and detergent. Consequently, the import of soap, soap noodles, as well as detergent must be discouraged, while strict actions must be taken against rising smuggling and under-invoicing.”

Published in The Express Tribune, February 15^th, 2024.

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