Polyethylene, polypropylene: Tariff cuts must reflect in export growth: expert

Business Recorder reported that an expert has called for the government to review its policy of cutting tariffs on imported raw materials against actual export performance. Trade data suggest that substantial tariff concessions on polyethylene (PE) and polypropylene (PP) have led to a far larger rise in imports than in downstream exports. Analysing the National Tariff Policy (NTP), the expert questioned whether the concession had delivered the export growth it was meant to achieve.

Customs duty on the main polymer lines was cut from 11 percent in FY 2021-22 to 3 percent in FY 2022-23, then to zero from FY 2025-26. Citing Trade Map data, the expert said PE resin imports rose by about 51,500 tonnes and PP resin imports by about 148,192 tonnes between 2022 and 2025, worth roughly USD 202 million at 2025 prices. Over the same period, PE downstream exports rose by only USD 3.5 million, while PP downstream exports grew by about USD 26.1 million.

The expert noted that exporters can already import inputs without customs duty under the Export Facilitation Scheme, so a general cut adds little for them. He estimated the customs-duty revenue forgone on the four lines in 2025 at about USD 83.6 million, and called for a measurable review of concessions against export outcomes.