Tax evasion, gas theft: PSMA approaches FBR against steel melting furnaces

Pakistan Steel Melters Association (PSMA) has approached the Federal Board of Revenue (FBR) against tax evasion and gas theft by certain steel melting furnaces engaged in manufacturing of billets, causing loss to the national exchequer. Industry sources told Business Recorder here on Friday that the PSMA had lodged a formal complaint with the Regional Tax Office Gujranwla and FBR to take immediate action against those furnaces involved in tax evasion.
According to the Association, sometime back our Chairman and few executive members of the association had apprised the FBR of the tax evasion by certain furnaces in Gujranwala and Lahore. It has been informed that Gujranwala gas authorities have raided the indicated furnace, where necessary action was also taken. However, according to reports, the steel melting furnace in Chian Wali, in Gujranwala has again started manufacturing billets using gas on self-generation (theft), and also involved in tax evasion. It has been requested to look into this undesired practice in Gujranwala as well as in Lahore once again on priority basis. The tax department should also curb this chain reaction with special reference to Lahore.
Highlighting another issue, the PSMA further said that it had come to the notice of the Association that small furnaces in the jurisdiction of Lesco were being charged sales tax at the rate of six rupees per electricity unit. In this case, small furnaces are not established Lesco area only but they are dispersed all over Pakistan with special reference to Gepco, Iesco and Fesco areas. In case the small furnaces have to be taxed, it should be on all Pakistan level having B-2 electricity connections and not restricted to Lesco area only.
Moreover, the small furnaces in Lesco area could not be compared with the furnaces in other areas. Keeping the above in view it is requested by the Association that small furnaces be taxed throughout Pakistan having 'B-2 electric connections' at the earliest.