(Pakistan News & Features Services)
The Vice Chairman of Pakistan Soap Manufacturers Association (PSMA), Tariq Zakaria, has pointed out that detergent, soaps and allied products manufacturing industry was facing an acute scarcity of Linear Alkyl Benzene Sulphonic Acid (LABSA) HS Code 3402.3100.
“LABSA is a key raw material used in the production of detergents, dishwashing liquids, soaps, and other cleaning products. The shortage has significantly disrupted production and increased manufacturing costs, particularly for small and medium-sized enterprises (SMEs),” he observed in a press release.
“The custom duty of this raw material is 10% besides sales tax 18%, income tax 5.5% and regulatory duty of 4% while for commercial importers an additional sales tax of 3% and income tax is 6% are imposed. The government must consider and accommodate commercial importers to serve the national companies by importing sulphonic acid,” he appealed.
Tariq Zakaria regretted that the national manufacturers of LABSA were currently unable to produce sufficient quantities to meet the growing demand of the domestic industry due to shortages of the required raw materials, as a result of which many manufacturers were operating below capacity, while others were struggling to continue production.
“The industry has also requested the Government to allow commercial importers to import LABSA and supply it to local manufacturers producing detergents, dishwashing products, and other finished cleaning products. This step would help overcome the current shortage and ensure uninterrupted industrial production,” the PSMA Vice President added.
“Furthermore, industry representatives have emphasized that existing policies and incentives largely benefit multinational companies, while Pakistan's small & medium enterprises receive limited support despite playing a vital role in employment generation and industrial growth,” he concluded.
