Steel melters submit set of proposals for federal budget

LAHORE: The Pakistan Steel Melters Association (PSMA) has submitted a comprehensive set of proposals for the Federal Budget 2025-26, aimed at revitalizing the steel industry and promoting economic growth.

These proposals address pressing issues, including sales tax evasion, high electricity costs, and smuggling. The PSMA recommends re-introducing the ‘Special Procedure’ to determine sales tax liability based on electricity units consumed, increasing actual collection manifold.

Additionally, measures to prevent tax evasion by small furnaces and rolling mills, registration of scrap dealers/collectors with tax authorities, and exemption of withholding tax on local scrap for steel melters has been proposed.

The PSMA also suggests increasing regulatory duty on steel billet imports substantially, reducing electricity rates for steel melters to ensure high-quality steel production, and regulating steel imports through sea-ports to curb smuggling and under-invoicing. Furthermore, the association recommends gradual reduction in tax exemptions given to FATA/PATA to provide fair competition and equal business opportunities across the country.

By implementing these reforms, the industry can contribute significantly to the country’s economic growth and development. The PSMA urges the government to consider these recommendations in the upcoming budget to create a favourable business environment for the steel sector.

Copyright Business Recorder, 2025