The marble industry in urban areas of Islamabad is facing huge problem because of establishment of marble industries in Swabi and other tribal areas which are enjoying exemption from sales tax as well as electricity bills.
This factor is discouraging the marble industrial units in the federal capital and these are closing fast as only 60 marble units are running whereas 140 units have been closed due to high cost of electricity rates and sales tax.
This was stated by president Islamabad Chamber of Commerce and Industry (ICCI) here on Monday during a meeting with a visiting delegation of federal bureau of revenue (FBR) which comprised of Additional Collector Sales Tax Dr M. Zubair, Secretary Sales Tax Law Procedure Abdul Hameed Memon and Syed Hassan Pervaiz Chief Automation and a number of FBR officials.
Additional Collector Sales Tax Dr M. Zubair addressing the members of Islamabad Chamber of Commerce and Industry highlighted the details of e-filing and gave the reply on various quires raised in this respect.
He said the e-filing registration did not require registration fee and SECP corporate register shall be used for the registration purpose. Responding to a question regarding exemption of sales tax on electricity bill running in the urban areas, additional collector said that a concrete proposals should be prepared for the consideration of FBR so that some relief may be provided instead of getting exemption.
Replying to another query regarding 1 percent special excise duty on steel sectors he said that steel association should sent a proposal to FBR for withdrawal of the special duty.
Nasir Khan, president ICCI highlighted the various issues to the tax officials and said that with the consultation of FBR and steel association it was agreed that Rs 4.75 shall be charged as sales tax in the electricity bills which would increase the revenue of FBR from 1.5 billion to 16 billion. He said that after this agreement the imposition of 1 percent special excise duty is very much unjustified which must be withdrawn immediately.
He further said that in the electricity bills, distributed in Islamabad, 4.75 percent has been added whereas in other cities like Lahore, Gujranwala and NWFP this tax is not included which is badly affecting business of the marble industry in this area.