The News reported that Pakistan Steel Mills has requested the Federal Board of Revenue to reduce sale tax and abolish special excise duty for boosting steel products sale.

Mr Salman Siddique CEO of chairman PSM to FBR said that in order to boost up the sales of Pakistan Steel and generate additional government revenue of duties and taxes in the remaining period of the current financial year, the facility especially formulated for imports may also be extended to domestic supply industries.

The revenue body through a circular dated June 21st 2011 issued by Revenue Division chief of RGST said that “It has been informed that in the case of imports the rate of sales tax has been proposed to be reduced from 17 percent to 16 percent and SED is proposed to be abolished with effect from June 20 and the collectorates have been advised to widely publicize the proposed amendments to generate revenue of duties and taxes without any loss of time.”

The PSM currently works at only 36% capacity while it was 40% in 2009 to 2010 and 64% in 2008 to 2009. The PSM has also requested the secretary, ministry of production to take up the mater with the Ministry of Finance on an urgent basis.

Local and domestic industries also need this facility as specifically sales of Pakistan Steel have dropped drastically since June 20 and resultantly collection of duties and taxes has also been badly affected which Pakistan Steel collects on behalf of the FBR.

(Sourced from thenews.com.pk)