ISLAMABAD: Inland Revenue officials of Karachi and Quetta are facing hurdles in collection of sales tax and in related matters of the ship-breaking industry.
Sources said that Regional Tax Office-III Karachi has approached the Federal Board of Revenue against transfer of ship-breakers’ cases from Karachi to Quetta for sales tax collection. The head offices of most of the ship-breaking companies are located in Karachi. Transfer of jurisdiction will result in legal complications.
The Chief Commissioner Inland Revenue RTO-III Karachi has informed FBR about the revenue potential of the ship-breaking sector and hindrances in its realisation.
At present there are around 45 cases of ship-breakers according to Pakistan Ship Breakers Association. Two of these are companies and the rest are individuals and associations of persons. Most of the cases are registered in RTO-Quetta.
