LAHORE-The steel melting industry is one of the largest revenue generating sectors in Pakistan. Presently, it is facing serious problems which are retarding its growth and deserve immediate attention of the government.
Pakistan Steel Melting Furnaces pay Rs 12,410/= in case of sales tax and for income tax Rs 1100/= is paid. Moreover, in case of other taxes a sum of Rs 1,000/= is paid. Total tax paid comes to Rs 14,510/=. While the steel melting furnaces located in area formerly FATA/PATA region do not pay the said tax. Under such circumstances furnaces cannot be competitive.
The industry shall like to highlight that in order to be competitive as compared to units located in FATA/PATA, some relief to us needs to be provided by FBR. In the other case such a system be developed by the FBR that tax at the port is levied which should be paid by FATA/PATA and by units located in taxable areas. It should be non refundable. Remaining tax by the FBR may be received at this very point from us.
Recently FBR has provided relief to ship breaking industry to the tune of 5% in RD, 2% in Income Tax and 2% in additional CD. Because of this relief, steel melting industry is being very adversely affected. It is requested that some relief to this industry be also granted by FBR on urgent basis to with hold its huge losses.