Islamabad: Federal government has decided to slash duties and taxes on import of steel scrap aimed at extending support to construction industry, well-informed sources told Business Recorder.
The price of steel has increased to Rs 180,000 per ton due to which government’s housing scheme is in jeopardy.
The government wants that the prices come down to Rs 150,000 per ton.
According to sources, the government is working on reduction of Regulatory Duty and additional customs duty on steel by up to 10 percent, in addition to reduction in sales tax.
The sources said industry has assured government that it will pass all the relief to the consumers.
The government has claimed that it has already slashed ST on steel from 17% to 14%. A couple of days ago, the government had abolished further tax which was imposed inadvertently.
It was an anomaly which government has rectified, and industry has benefitted from it.
Government is trying to give impression that it has given relief to the industry which is not correct.
On reduction in turnover tax, industry says, it will benefit the government in documentation. Reduction in sales tax on meltable scrap will also not have any advantage to the industry.
Copyright Business Recorder, 2021