Pakistan Steel Melters Association, the largest revenue generating industry of the country, has stated that it cannot sustain sales tax @ Rs 13 per electricity units consumed and more than 100 steel melting furnaces and re-rolling mills of Gujranwala and Balochistan have been closed en bloc.
In a statement on Thursday it stated that steel melting units established in sugar mills premises with muddled accounts (in most cases) and cheap electricity had made steel melting units non competitive, which opted to pay sales tax on ad valorem basis.
It further alleged that a mushroom growth of self generating units especially in Lahore was on the increase. From FATA/PATA (non tax areas) cheap billets are being smuggled into tax areas without any let up causing huge revenue loss to the steel industry and the exchequer. From district Gujranwala, the government would loose revenue of one billion rupees per month alone, PSMA warned.
PSMA has also opposed any duty and tax concession/exemption to any foreign construction company which will destroy the domestic industry and cost the national exchequer approximately Rs 11 billion.
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