PALSP urges for effective tax mechanism for steel units

The Pakistan association of large steel products (PALSP) contacted the chairman of the FBR to discuss the current economic conditions of the small local steel units around the country. The steel sector has valued the fact that the government has excused the sales tax for the steel supply by the domestic manufacturers which is currently being used in the Gawadar free zone which includes the construction of Gawadar airport, seaport and other important projects.

 However, the local steel industrial units have not been benefitting from the act and no local unit supplies have been made so far. So the association has asked the bureau to devise a plan to avail sales tax and excise duty redemption on the products supplied by the local units.

Bound by the regulations, the sales tax refuse the apportionment of input tax on raw exempted supplies which is why the local industries have been unable to profit from the projects. The measure taken is for the benefit of the units but due to the lack of a proper procedure, they have not been able to do so. The local industry has always been eager to play its role in the development of the country by contributing to such projects and being a helping hand in achieving the government’s vision of “MADE IN PAKISTAN”.

Also the contractors responsible for the projects have not been contacting the local companies to get their supplies from the domestic units. The representatives requested the officials to take proper steps in this regard and allow the taxes and the duties on all inputs as adjustment in the monthly sales tax return.