Eliminate unjustified 7pc ACD on RBD Palm Stearin: Zafar Mahmood

Karachi, February 25, 2020: Pakistan Soap Manufacturers Association (PSMA) held an urgent meeting of its Managing Committee in Islamabad and urged the Government to eliminate the unjustified 7 percent additional Custom Duty (ACD) on RBD Palm Stearin, which is a basic feedstock for Toilet & Laundry Soaps, said Chairman PSMA, Zafar Mahmood.

He pointed out that soap industry was using Inedible Tallow to produce laundry soap and was being imported from India. After imposing ban on imports from India in August last year, the import of Inedible Tallow is also banned. On the other hand the import of Inedible Tallow in Pakistan is subject to Halal Certification.

He further said, and there is no other country from where halal certified tallow can be imported. Soap is a basic commodity and used by every citizen of the country, especially laundry soap which is used by Pakistan’s poorest population. After stoppage of import of tallow coupled with unjustified imposition of 7 percent ACD on Palm Stearin, the soap has gone out of reach of a poor man.

Resultantly, the demand is drastically cut; causing closure of small factories operating in SME sector and workers have lost their jobs under current difficult inflationary economy. Only big companies who have multiple product lines are surviving and the small to medium sized companies are either closed or are on the verge of closure which would further result in to loss of thousands of more jobs.

Under the circumstances, Chairman PSMA urged Government to withdraw ACD on RBD Palm Stearin, allow Inedible Tallow for use in soap without the condition of Halal Certificate and if possible allow imports of Tallow from India as such relaxation has already been given by the Government for Pharmaceutical Industry.

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