LAHORE: The Pakistan Steel Melters Association (PSMA) on Monday voiced its concerns regarding taxation related issues being faced by the industry and urged the government to resolve its problems immediately.
PSMA Chairman Rehman Aziz Chan said that the steel melting industry is one of the largest revenue generating sectors of the country adding that issues being faced by the industry negatively affect Pakistan’s economic growth and hence deserve immediate attention.
“Steel melters pay Rs12,140 in sales tax, Rs1,100 in income tax and an additional Rs1,000 in the form of other taxes. On the other hand steel melters operating in Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) do not pay taxes which makes it hard for PSMA furnaces to remain competitive,” he said.
“We already pay sales tax on the import of steel scrap and ferrous-alloys. At the time of production we pay sales tax on electricity and on all other consumable items.” he further said adding that a further 10 per cent sales tax with every sales tax return should be abolished.
PSMA chairman said that the government has not registered a large number of steel traders who evade taxes.
He further informed that presently a large number of scrap dealers are operating unregistered in Lahore’s Misri Shah and Karachi’s Sher Shah markets. He urged the government to register such scrap dealers and bring them under the tax net which he said will benefit the industry and raise additional revenue for the government.