The Pakistan Association of Large Steel Producers (PALSP) has lauded the strategic tax reforms introduced in the 2024-25 budget, heralding a significant boost for the steel industry.
(more…)Tag: steel sector
-
PALSP Calls on Government to Rectify Tax Inequities
The Pakistan Association of Large Steel Producers (PALSP) has formally petitioned Finance Minister Muhammad Aurangzeb, urging an end to what it describes as discriminatory tax practices that adversely affect the steel sector compared to other industries.
(more…) -
CCP Approves Saudi-Based Mergers in Steel Sector
Islamabad, February 24, 2024 – The Competition Commission of Pakistan (CCP) has given the green light to three pivotal mergers involving the Saudi Iron and Steel Company (Hadeed), a major player in Pakistan’s steel market.
(more…) -
Widespread smuggling from Iran, Afghanistan threatens local steel industry
The Pakistan Association of Large Steel Producers (PALSP) has expressed concern about the widespread smuggling of steel from Iran and Afghanistan, which is having a detrimental impact on the domestic industry.
(more…) -
Steel production drastically hit by scrap shortage, non-processing of LCs
ISLAMABAD: Production of steel products has been drastically affected due to shortage of scrap as banks are not processing letter of credits (LCs).
(more…) -
Steel industry at brink of collapse amid raw material shortage, overhead costs
ISLAMABAD: Steel industry is at brink of collapse due to shortage of raw material and overhead costs. This scenario is compelling large producers to stay afloat as costs continue to mount.
(more…) -
Finance Bill 2019: Special regime for steel sector abolished; normal tax at 17pc imposed
ISLAMABAD: The government has abolished special sales tax procedure for steel sector through Finance Bill 2019 and imposed 17 percent federal excise duty in sales tax mode.
According to amendment proposed to Federal Excise Act, 2005 through Finance Bill 2019, normal tax of 17 percent ad valorem has been proposed on supply of steel billets, ingots, ship plates, bars and other long re-rolled products.
A fourth schedule to FED Act has been proposed for minimum production of steel products.
The minimum production for steel products shall be determined as per criterion specified below:
01. Steel billets and ingots: one metric ton per 700 kwh of electricity consumed.
02. Steel bars and other re-rolled long profiles of steel: one metric ton per 110 kwh of electricity consumed.
03. Ship plates: 75 percent of the weight of the vessel imported for breaking.
Procedure and conditions:–
(i) Both actual and minimum production, and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay duty shall be discharged on the basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess duty on account of excess of minimum production over actual supplies:
Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June next year, in other cases, the duty actually paid shall not be less than the liability determined on the basis of minimum production for that year:
Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel.
(ii) The Board, may notify minimum values for steel products as mentioned in the Table above in exercise of powers under sub-section (5) of section 12.
(iii) The payment of FED on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking.
(iv) The melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction. The officers Inland Revenue having jurisdiction shall have full access to such meter.
(v) The minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.