FPCCI concerned over fixation of steel prices for sales tax

Web DeskWeb Editor

01st Sep, 2021. 07:40 pm

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over the price fixation of steel products for the imposition of sales tax.

The apex trade body in a communication sent to Finance Minister Shaukat Tarin on Wednesday, highlighted serious issues of the small and medium steel re-rolling sector.

The FPCCI had already sent a letter to the Finance Ministry on August 11, 2021 on the issue.

FPCCI president Mian Nasser Hayatt Maggo said that the SRO 985(I)/2021 had been issued by the Federal Board of Revenue. This notification totally amazed the members of the steel re-rolling mills association (PSRMA) because the rates shown are unconditionally in violation to the business rules and market ethics and have neither been issued in consultation with the relevant stakeholders.

The finance minister has been informed that the members of PSRMA produce approximately 65 per cent of the total requirement of steel bars consumption and it is also most labour-intensive among the entire steel sector.

If the things are not properly addressed then the small and medium re-rolling mills are going towards closure, which ultimately hurts the economic activities of the country and creates unemployment, he added.

“Such measures taken by the tax authorities badly hurt the vision of the prime minister to make the low-cost houses for the poor masses of the country and if the current situation prevails then this vision can’t be materialised.”

The FPCCI president urged the finance minister to spare time for a meeting with the representatives of the sector to highlight anomalies.

 

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