APCMA calls on government to eliminate duty on imported coal

APCMA calls on government to eliminate duty on imported coal
01 July 2014

The All Pakistan Cement Manufacturers Association (APCMA) is calling on the government to eliminate the one per cent duty on imported coal as it has done with other fuel types since its initial introduction.

The association has requested has requested Prime Minister Mian Muhammad Nawaz Sharif, Ishaq Dar, Minister for Finance and Tariq Bajwa, chairman of the Federal Board of Revenue to restore zero taxation on the cement industry’s main fuel.

The Pakistan cement sector relies heavily on imported coal for its production process. According to local sources, it accounts for 95 per cent of the 4.5Mta of imported coal into the country.

The APCMA highlighted that the one per cent custom duty, initially enforced in Budget 2013-14, was to be imposed on imported coal as well as petroleum products. Subsequently, however, the tax has been removed on all other fuels. The association said the duty had only been imposed on coal during Budget 2014-15, a move which is being deemed unfair by the cement industry body. It argues that, while on the one hand, the government is encouraging coal based power generation, on the other it is imposing a tax on imported coal.

Published under Cement News

Tagged Under: Energy fuel & power Pakistan