FBR to increase duty on BOPET films
Islamabad: The Federal Board of Revenue (FBR) has suggested increasing customs duty on import of Bopet films, which are used by the packaging industry, in an effort to protect the local industry.
Representatives of the firms pleaded that the concession in import duty on Bopet films (polyester films) should be withdrawn as it was granted when the films were not being produced in the country. Now the concession is hurting the interest of the local manufacturing industry, they said.
It was, however, argued that this assertion was not justifiable as the present classification of the film was not based on thickness.
The FBR believed that instead of withdrawing the full duty concession on import of Bopet films, the existing concession should be reduced gradually.
The Ministry of Commerce supported the proposal except for enhancement of customs duty on Bopet film used in the manufacture of scratch or magnetic strip. The ministry suggested that the proposed duty should be reviewed in June 2014.
The ECC noted that the present duty structure for Bopet films has been in place since 2006. Moreover, it should be ensured that the proposed increase in customs duty on import of films is in the interest of the local industry and does not discourage foreign investment.
At the end of the meeting, the ECC decided to constitute a committee to carry out a comprehensive study.