LAHORE: The Pakistan Steel Melters Association (PSMA) on Wednesday raised serious concern that the Federal Board of Revenue has substantially increased the minimum value/applicable rates per Metric Ton of supply of locally produced steel goods, for the purpose of determining the payment of sales tax, vide S.R.O. 501(1)/2023, dated April 20, 2023.

This decision was taken unilaterally and it would increase the prices of steel bars to an unreasonable or unacceptable level for the general public.

As per above notification, the minimum values of different categories of locally produced steel goods have been considerably elevated, with a raise ranging from 28% to 46%, as compared to last year’s values, through similar notification of FBR dated April 5, 2022.

PSMA is of the view that Pakistan is already facing an unprecedented surge in the prices of steel bars, mainly due to massive increase in prices of raw materials (steel scrap) in the international market, steep increase in freight charges, massive devaluation of Pakistan Rupee, non-opening of LCs, drastic increase in discount rate, increase in various taxes and duties, high rates of gas, electricity & fuel, increase in the Labor and overhead cost and un-controlled inflation rate.

This alarming situation is resulting production halts and financial losses, resulting closure of numerous steel businesses and widespread job losses in the country.

As the steel industry is already struggling on various fronts for its survival and facing a very challenging and crisis like situation, therefore, the above SRO will further hurt, damage, and put extra burden on this industry, which cannot absorb any further pressure.

Copyright Business Recorder, 2023