Payment of ST: Steel melters for reinstating special procedure

LAHORE: In a recent development, the Pakistan Steel Melters Association (PSMA) has issued a pressing appeal to the Government, advocating for the reinstatement of the “Special Procedure for payment of Sales Tax by Steel Melters”. This call comes in light of the association’s concerns regarding the rampant tax evasion and unfair competition prevailing in the steel sector.

According to the association, the reintroduction of this special procedure will not only facilitate the documentation of the steel industry but also ensure the prompt collection of sales tax. By addressing these issues, the government stands to witness a substantial increase in revenue.

One of the primary grievances highlighted by the association is the flourishing of unregistered steel melters operating under the guise of other businesses and procuring local scrap without fulfilling tax obligations. This unfair advantage has created a significant disparity, making it difficult for registered, tax-paying steel melters to compete on price.

To combat tax evasion effectively, the association proposes the application of sales tax based on electricity consumption, which would serve as a deterrent against tax theft and bring unregistered units within the tax net. Additionally, this measure is expected to curtail the misuse of Flying Invoices for evading Goods and Services Tax (GST).

The Pakistan Steel Melters Association emphasizes that implementing these measures is essential not only for ensuring fair competition within the industry but also for bolstering the country’s economic stability. The association expresses gratitude for considering their recommendations and awaits a positive response from the Government.

Copyright Business Recorder, 2024