Daily Times

KARACHI: Government should take measures with cooperation of paper manufacturing units and paper importers of the country in order to provide price relief on consumption by consumers at education, office and government levels.

There has been always a tug of war between paper manufacturing units and paper products importers in the country, which resulted misery to end users of the products by paying more and more on every kind of paper and board off and on. The most affected segment of the society is the education sector including students of all levels, educational institutions and education books printing units in the country.

Members of Pakistan Pulp Paper and Board Mills Association (PPPBMA) and All Pakistan Paper Merchants Association (APPMA) on the matter of taxes on different type of paper products asked government to ease taxation for benefit of end users.

There are more than one problems, which should be done away by the concerned government agency with consultation of stakeholders-PPPBMA and APPMA said. Afghan Transit Trade (ATT) and import of finish paper products in name of waste paper under misquoting and false declaration by commercial importers is inflicting paper manufacturing industry.

Around 90 percent import of finish paper products are made in name of waste paper while import more than double of the consumption in Afghanistan is being made under ATT.

The paper industry is importing around 12 percent of the paper waste for manufacturing pulp to prepare different type of paper and paper board. Due to rising wood pulp demand and higher custom duty on commercial import, commercial importers were misappropriating the facts under old Customs system.

While under custom tariff, paper is treated as finished goods under section (x) chapter 48 of Pakistan Customs Tariff, at high customs duty slab, at the rate of 20, while in Customs Policy, raw material is at 10 percent or zero rate duty slab.

The national exchequer is depriving millions of tax due to misquoting the product by the commercial importers.

The government on their demand did not reduce custom duty to uniform level to 10 percent from 20 percent on two categories, (uncoated and coated paper and board). The commercial importers are using Customs system for clearance of containers’ goods under head of waste paper import.

The international cost of waste paper comes around $115 dollar per tonne while import of finished paper coated and uncoated paper costs around $750 per tonne and $650 per tonne respectively. Prices for the end users can be controlled if the government reduces Custom Duty to uniform level on two categories, uncoated and coated paper and board,.

“We are importing wood pulp around $800 per tonne from Canada, China, Norway, Indonesia and Sweden, besides paying one percent Excise Duty including regular taxes and Sales Tax”, said a paper manufacturer.

Around 100 units of PPPBMA were braving the high cost of business, energy crisis and production loss, but still we were selling products with a minimise increase around 5-7 percent, PPPBMA, Kamran Khan said. PPPBMA were catering around 75 percent of the country’s paper and board requirements with supplying low cost products for all.

We are manufacturing 55 to 70 gram-mage writing paper, with a yearly output more than half million tonne. Around 51,000 tonne of wood pulp is imported yearly”. He said our paper costs comparatively less as compare to other countries in this region and we use around 10 percent of wood pulp and 90 percent of straw, husk and other agriculture waste in production.

Members of APPMA said we import paper and duplex box paper from Indonesia, China and UK and other countries to meet our domestic requirements.