The tiles industry has cautioned the government that the proposed new tariffs could force a shift from domestic manufacturing to an import-based model, potentially leading to annual foreign exchange outflow of $400 million.
Industry stakeholders have urged the government to maintain the existing tax structure in the upcoming budget for 2025-26.
The Ministry of Industries and Production held a second meeting of the committee formed for the development of tiles industry, under the chairmanship of Special Assistant to the Prime Minister Haroon Akhtar Khan, according to a press release.
Khan reviewed the progress reports submitted by the tiles industry and the Engineering Development Board and emphasised that the industry must not be allowed to shut down, highlighting its critical importance for the national economy.
It was noted that before 2018, a 55% regulatory duty was imposed on tiles, which led to annual imports worth $215 million. The industry currently faces acute cost disadvantages compared to the major tile-producing and exporting countries in the region. The production cost has increased 72% primarily due to the rising prices of gas and power.
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