Pakistan likely to reduce import duty on steel products

Pakistan likely to reduce import duty on steel products

Pakistan government plans to reduce import duties on steel products and to offer certain incentives to the importers in the budget 2005-06 in an effort to bridge the cap between steel supply and demand in the local market. In line with the plan, the import duty on steel products will be reduced from 25% to 20%. Moreover, the 6% income tax exemption is planned to be extended to commercial importers. Sources report that currently, only industry importers enjoy 6% income tax exemption. As reported by SteelOrbis in December 2004, Pakistan government took certain measures to relieve the market. The government reduced the import tariff on rollable scrap from $430 per ton to $330 per ton, and the import tariff on re-meltable scrap from $400 per ton to $300 per ton.