The steel industry has proposed imposition of fixed sales tax on the import of scrap, billet and bars. The proposed sale tax rates are Rs 1,500 on scrap, Rs 3,000 on billet and Rs 4,500 on bars.
Monthly review of rates for adjustment according to fluctuation in the international market was also proposed. The proposals were forwarded to the Engineering Development Board's Tariff Rationalisation Committee for steel sector here on Thursday but these could not be finalised due to reservations on the part of All Pakistan Contractors Association (APCA).
The meeting was held in the EDB with the vice-chairman and chief executive officer Imtiaz A Rastgar in the chair. 24 representatives of steel manufacturers, Pakistan Steel Rolling Mills Association Lahore & Karachi chapters, Pakistan steel, Ministry of Industries, Pakistan Ship breaking Association, Pakistan Steel Manufacturers Association, Pakistan Contractors Association and CBR attended the meeting.
The steel industry representatives also raised the issues of smuggling, sales tax, Afghan transit trade and customs clearance of raw material.
The meeting also reviewed some existing SROs and suggested amendments therein. The industry recommended continuation of existing tariff on steel in the next fiscal budget.
The APCA strongly opposed the steel industry's proposal of customs duty increase on some items saying that it would further hurt the construction industry already suffering due to sharp increase in the prices of steel bars and cement.
The Contractor Association refused to give views on the proposals.
The EDB committee will meet again on May 5 to finalise its recommendations, which would go to CBR for inclusion in the budget document.
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