Pakistan Soap Manufacturers Association (PSMA) has urged the government to reduce Additional Custom Duty (ACD) on Palm Stearin so that a daily use item like Soap can be provided to the people on low price.
The demand was unanimously made by the Soap manufacturers today at a meeting presided over by Mr. Zafar Mahmood, Chairman PSMA.
The representatives of the Soap Manufacturing industry from across the country attended the meeting, which was called to discuss the issues being faced by the industry, especially after imposition of the ban on imports from India.
The members of PSMA pointed out that the local soap industry was importing Halal Tallow from India before 7th August 2019 when the Government of Pakistan imposed ban on imports from India.
The Soap manufacturers, therefore, opted to import Palm Stearin as an alternate viable feedstock for soap.
But in the last budget, the Additional Custom Duty (ACD) on this product has been increased from 2% to 7% in addition to regular fixed Tariff.
As such the import of palm stearin has become expensive for the industry thus increasing the cost of production.
Therefore, the situation has bound the industry to pass on the rise in cost to general public.
Mr. Zafar Mahmood, Chairman PSMA, while concluding the discussion, observed that Soap is a commodity of daily use by every household in the country and such passing on the increase in cost is making the life of common man more difficult.
Therefore, he emphasized the need of reducing the ACD on palm stearin to 2%, the situation which was prevailing before budget announcement. He pointed out that the similar increase was also made for edible oils, which was immediately reversed after protest by the edible oil industry.
Chairman PSMA urged the Government to immediately reduce the ACD on Palm Stearin from 7% to 2% to give relief to the people of Pakistan on a daily use consumer item.
The meeting also discussed the ways to improve exports and called for the necessary support from Government to promote exports of soap from Pakistan.