ISLAMABAD (June 15 2003) : Pakistan Vanasapati Manufacturers Association(PVMA) on Saturday termed difference in duty on crude palm oil (CPO) andpalm oil as a major step towards creating monopoly of one industry, which,it cautioned, would encourage direct filling of hard oil to market lowquality ghee.

PVMA office-bearers, including Senior Vice Chairman Maqboolur Rehman, ViceChairman Haji Abdul Razak, ex-chairman Mian Riaz and ex-vice chairmanSheikh Ikram told a press conference that disparity in duty on crude palmoil (CPO) and palm oil was against the government policy to discouragemonopoly in the new scenario.

The government had cut down the customs duty on crude palm oil in theBudget 2003-04, to Rs 9,000 per tonne, whereas duty on palm oil was keptat Rs 10,850. It's a major difference, which could encourage practice ofhard oil filling, a serious hazard to human health, they said.

The PVMA calculated difference in duty, inclusive of taxes, to Rs 3,958per tonne.

The PVMA office-bearers said Evian Fats and Oil (Pvt) Limited Karachi,would be the only beneficiary of what they called unjustified favour as itwas the only operational refinery in the country.

Evian could process CPO to convert it into RBD and earn at least Rs 2,078per tonne as it lacks the facility of further process of the second stageto convert it into palm oil.

Ghee industrialists demanded proportionate cut in duty on palm oil toremove the anomaly and ensure quality ghee/cooking oil to the consumers.

The PVMA lamented equal customs duty on soft oils and importedghee/cooking oil, and warned to the authorities that it would adverselyaffect the growth of the industry as well as additional activities of theindustry related to employment opportunities.

The PVMA demanded 25 percent additional duty on import of vegetableghee/cooking oil over and above exiting duty to provide reasonableprotection to the local industry.

The PVMA proposed that fixation of C&F price of imported tin plate shouldbe charged on the basis of declared transacted value as the single partySiddique Sons Tin Plate Limited, which already enjoyed unprecedentedexemption of customs duty/sales tax/GST/income tax, was exploiting thesituation by offering higher C&F prices on imported tin plate.

It said SRO 487 (1) 2003, issued on June 7, empowered the customsofficials to entertain offer of further value and allow lifting ofimported tin plate by the party offering higher value.

The PVMA alleged that the measures were taken to provide furtherprotection to Siddique Sons Tin Plate Limited and put other importers atdisadvantage.

The association demanded that the SRO should be rescinded and import oftin plate on C&F and tin plate clearance be allowed on declared transactedvalue or value reported in dollars per tonne in the Metal BulletinResearch.

However, the PVMA welcomed various steps taken for this sector in thebudget. The office-bearers said that the positive steps would go a longway in paying dividend to the country.