Local ceramic industry in hot water

ITP reduced on ceramic tiles import from China, Europe and Middle East

KARACHI: The Import Trade Price (ITP) on tiles has been reduced to $1.82 per square metre to Iran, causing a massive injury to the local tile industry, said local tiles manufacturers.

According to them, the ITP on ceramic tiles imported from China, Europe and Middle East has also been reduced. “Why is the Federal Board of Revenue (FBR) all out to ravage the ceramic tiles industry that is a big revenue earner for the national exchequer?” they questioned, blaming the FBR.

“Tiles worth $2 billion from Iran have been smuggled and dumped at go-downs in Karachi and Lahore, while the situation in the rest of the country’s outlets is not very different,” they claimed, alleging that the tiles had been imported under the wrong PCT heading 2713.200, attracting 10% duty and causing loss of billions to the exchequer.

Read: Indian textile APTMA demands curbs on imports

“The government had also levied 2% additional sales tax on locally manufactured tiles and resultantly, they were in a disadvantageous position,” they added.

Import data reveals that a large number of consignments of Iranian tiles were released in the price ranging from $0.60 to $0.16 per square metre against $2.17 and above per square metre from China vide Valuation Ruling No 518/2013. However, there is no current Valuation Ruling for Iranian tiles. 

Published in The Express Tribune, October 14^th, 2015.

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