The Pakistan Steel Melters Association (PSMA) has said that steel melting furnaces established in the sugar mills should be registered with the regional tax offices concerned for the purpose of sales tax and income tax. The Association in a letter to Federal Minister for Finance Asad Umar said that mushroom growth of steel melting units is being experienced in the sugar mills and some other industries including textile. The Association further pointed out that the formal steel melting industry is paying sales tax at the rate of Rs13/ per unit of electricity consumption while such units established in sugar mills and others are not paying a single penny on this account that is depriving the national exchequer of millions of rupees on the monthly basis. It further claimed that accounts of sugar mills are muddled up and cannot be deciphered.
The PSMA suggested to the government that tax should be levied on the capacity of the panel of transformers from the date of production. The letter further pointed out that presently the steel melting units are paying Rs5,600 per metric ton of scrap at the import stage which is adjustable. It suggested that the government should abolish this adjustable tax as we are ready to pay non-adjustable tax of Rs8,500 per metric ton of scarp at the import stage.
It further requested that the government should reduce sales tax from Rs13 to Rs3 per unit of electricity consumption. By implementing this formula, the government would not be bearing financial loss rather it would be generating more revenue. The proposed changes will not only provide level playing field but also be considered as ease of doing business for the steel meting industry.
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