The Vice Chairman of Pakistan Soap Manufacturers Association Mr. Tariq Zakaria extremely fated Detergent, Soaps & allied products manufacturing industry is facing a harsh scarcity of Linear Alkyl Benzene Sulphonic Acid (LABSA) HS Code 3402.3100, 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). The Custom Duty of this Raw Material is 10%, Sales Tax 18%, Income Tax 5.5% & Regulatory Duty is 4%, for Commercial Importers its additional sales tax is 3% & income tax is 6%. The government must consider and accommodate commercial importers to serve the national companies by importing Sulphonic Acid.
National manufacturers of LABSA are 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, many manufacturers are operating below capacity, while others are struggling to continue production.
Industry representatives have urged the Government of Pakistan to take immediate measures to address this critical situation by abolishing the anti-dumping duty and regulatory duty on the import of LABSA. Removing these duties would reduce production costs, stabilize the supply chain & help manufacturers continue producing essential household cleaning products at affordable prices.
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.
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.