LAHORE: The industrialists and representatives of the top body of country’s business community have asked Federal Board of Revenue to impose special cess on imported steel to balance the local industry.
The representatives of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the Pakistan Steel Melters Association (PSMA), in a joint statement, have urged FBR to levy RD, sales tax or special cess on imported steel products.
FPCCI Vice President Hameed Akhtar Chadda said that balancing various segments of the steel industry is crucial to achieve a win-win situation. By increasing taxation on imported products, FBR will be able to mop up the surpluses on imported products and gain maximum revenue while domestic units will also ramp up production.
SAARC Chamber Vice President Iftikhar Ali Malik said that with 5 million tons of steel capacity in the country, a 10% increase in industry capacity utilisation will result in an additional 500,000 tons of domestic steel output and revenue generation for FBR of over Rs 3 billion.
He said that by providing an environment of fair competition where the inputs of each sector are equalized by levying the appropriate amount of tax on each segment, industry capacity utilization will increase. Moreover, considering a conservative billet import figure of 250,000 tons, FBR stands to gain at least 3 billion rupees via direct taxation on imports through additional taxation at import stage to balance the sector.
He said that during last fiscal year, sales tax was increased on steel melters by a whopping 75% and energy prices were increased by 74%. This year 5% RD was levied on steel scrap, which is a raw material for the industry.
