Misuse of concessions to Fata, Pata: Steel producers approach Tarin for monitoring body

ISLAMABAD: The large steel producers have approached Finance Minister Shaukat Tarin for immediate constitution of a monitoring committee to prevent pilferage or misuse of the tax concessions granted to the industries in erstwhile tribal areas.

In a communication to Shaukat Tarin on Tuesday, the industry has filed an appeal to implement decisions to minimise fall out of removal of federal excise duty (FED) on the steel units of the Fata/Pata.

The consultation of the monitoring committee was decided during the last meeting held between the documented industry and the finance minister.

The Pakistan Association of Large Steel Producers has also strongly protested against the Resolution No 496 passed by the Senate last month pleading for grant of waiver from all kinds of duties and taxes to the industries in erstwhile tribal areas.

The industry has referred to the last association’s meeting with the finance minister accompanied by Advisor for Commerce and Investments, SAPM on Revenue and FBR Member IR-Policy.

The meeting was very reassuring, wherein, our industry was promised that the government will take effective preventive measures to not allow any misuse of the extraordinary concession that have been extended to the industry operating in the Fata/Pata with the removal of levy of the FED on industry operating in these areas.

To ensure vigilance a Monitoring Committee will be formed by the government, which will maintain check and balance, so that no pilferage or misuse of the concession takes place.

It was also decided that a representative of large steel producers will be part of the Committee.

It is requested that the Committee may be formed at the earliest.

The check posts at key exit points from the Fata/Pata and the KP must have presence of army, police, customs and representatives of the association.

These checkposts may be created on highest priority and at the earliest.

The government must be working on it but there is a need to build these check posts swiftly.

Since the decision was taken two months ago, so it is requested that all needed measures may kindly be taken without any further delay, it added.

The industry is positive that the government will take all the measures needed for addressing this issue by according it the highest priority in order to save the steel industry of the country from any further harm.

The members of the association are deeply disturbed by the partisan approach adopted by the Senate by passing the resolution suggesting complete waiver of huge amount of over-due taxes to all those steel units/industries of the Fata/Pata, who massively abused the tax exemption and sold their products in the tax areas causing colossal loss to the struggling local industry of the country, which contributes colossal amount of duties and taxes to the nation’s exchequer.

This practice would be most detrimental for the entire industry of the country, especially the steel sector as well as oil and ghee sector.

The association urged the Senate to withdrawn this resolution.

Copyright Business Recorder, 2021