Budget proposals 2014-2015: zero percent tax/duty for LED based products demanded

KARACHI: The business industry has demanded that import duty and sales tax for LED based products (irrespective of applications) should be charged at zero percent and LED is considered much more energy efficient comparatively to normal bulbs and florescent lamps.
The following categories of LED based products have been demanded for zero rated import duty and sales tax included: LED based retrofit and lamps; LED modules and its accessories; LED based light fitting-finished form and LED based light fitting-CKD form.
The business industry said that it is an alternative solution to promote LED for alleviating energy crisis. They are environmentally safe, long life, durable and without emission of harmful radiation.
The business industry has suggested the tax machinery to remain charge zero percent import duty and sales tax on import of energy savers those who come under relevant HS code 8539.3910 to keep quality energy savers on affordable prices for masses.
In current scenario, there is a huge shortage of energy so it is in the best interest of the country to promote energy saver lamps.
It said that production capability of few assemblers and manufactures is limited against targeted market. There is no standardization of saver lamps by PSQC now.
The business industry said that due to low purchasing power of masses, any additional import duty on import of energy saver lamps will make saver lamps unaffordable for customers.
Moreover, the business industry has urged the government to charge zero percent duty on imports of parts and CKD for HID light fixtures and fluorescent light fixtures as they are carriers of lamps and deserve same duty relaxation as energy efficient lamps.
In existing situation, there is no benefit for importer of non-finished light fixtures from the origin of china as:
For HID fixtures under free trade agreement (FTA) China: Five percent duty finished light fixtures (HS code 9405.4090) and 25 percent duty for parts of light fixtures (HS code 9405.9900)
For fluorescent fixtures under FTA China: 19.5 percent duty for furnished light fixtures (HS code 9405.1020) and 25 percent duty for parts of light fixtures (HS code 9405.9900)
The business industry further recommended that zero percent tax and duty should be charged on all items used in any solar solutions including road lightning under relevant HS code 9405.4090.
The business industry said that it would prove to be alternative solution for alleviating energy crisis in the country in order to promote solar energy.
It said that the government of Pakistan has introduced SRO 490(I)/2007 to provide relief to some solar applications. Presently the benefit is limited to solar home system only.

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