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GST or duty on imported DAP fertilizer: Body to analyse proposal of industry

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The government has constituted a committee to analyse a proposal of the domestic industry to impose general sales tax (GST) or duty on imported DAP fertiliser.

Sources told Republic policy here on Monday that the decision was made during the last meeting on issues regarding DAP fertiliser convened at the Ministry of Industries and Production under the chairmanship of the Syed Murtaza Mahmud Minister of Industries and Production.

The committee comprising officials of the Industries and Production; Finance Division, Commerce Division, National Food Security and the FBR would determine the cost of production of the local companies as compared to the imported DAP; assessment of imported DAP and value of raw material used in the production of the DAP etc and subsidy to the industry.

Secretary of Industries and Production apprised the forum that the Fauji Fertilizer Bin Qasim Limited (FFBL) has approached the ministry with a request that due to the exemption of output GST after Finance Bill 2022-23, the FFBL being the sole manufacturer of the DAP, is at a disadvantage with reference to the importers of the DAP.

The FFBL had proposed that either the GST at input stage for FFBL may be exempted or imported DAP may be made subject to GST or duty may be imposed at the import stage of the DAP fertiliser.

The FBR secretary customs (Tariff) informed that all fertilizers were being imported at zero percent Customs duty and the DAP was also being imported from China with whom Pakistan had a Free Trade Agreement. In order to raise the rate of Customs duty, China must agree on the subject proposal.

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