Daily Times reported that Pakistan government has withdrawn 25% regulatory duty on export of iron and steel scrap products to promote exports.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 their copper and brass scrap into ingots to change HS nomenclature to avoid regulatory duty. To check this practice, scope of regulatory duty was extended to ingots, bars, slabs and billets. According to the documents, due to this levy, exports of these value added items became unfeasible putting local exporters at a disadvantageous position in the international market. To provide competitive environment to local manufacturers of these items, the government withdrew 25% regulatory duty on export of iron and steel scrap products.