Pakistan withdraws 25% duty on ferrous & non ferrous scrap exports
According to Daily Times, Pakistan government has withdrawn 25% duty on export of iron and steel scrap products to promote exports. The duty was imposed on export of waste and scrap of ferrous and non ferrous substances as their export was causing shortage for the local industry based on the same raw material, thereby, increasing the cost of iron and steel construction materials.
Subsequently, exporters of non-ferrous substances started converting non ferrous scrap viz copper and brass scrap into ingots to change HS classification to avoid duty.
In order to counter this practice,Govt extended duty also to ingots, bars, slabs and billets. Due to this levy, exports of these value added items became unviable making local exporters incompetitive in the international market. To provide competitive environment to local manufacturers of these items, the government has withdrawn 25% export duty on iron and steel & other scrap products.
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