APCMA urges government to withdraw import duty on coal


Updated Tue, 08 Jul 2014 13:38:22 GMT

According to local reports, Muhammad Ali Tabba, Chairman of the All Pakistan Cement Manufacturers’ Association (APCMA), has urged the government to remove import duty on coal. Tabba labelled the tax an injustice towards the cement industry; the sector is the primary consumer of imported coal in Pakistan, using approximately 95% of the 4.5 million tpa imported into the country.

As a result of increasing gas shortages, many industries have switched to using coal as an alternative energy source. Although the tax is minimal, it could be damaging to future investments in alternative energy projects. Tabba further noted that the industry’s competitive advantage would be significantly reduced if the government continues to impose import duty on its main fuel source.

This issue adds to the long list of problems faced by Pakistan’s cement sector, including load-shedding, labour shortages, a slowdown in construction projects, a low level of exports and losses on coal imports due to a lack of freight subsidies by the government.