December 04, 2008

Lahore HC suspends revised tax notice for steel melting units

Pakistan Daily Times reported that Justice Mr Hamid Ali Shah of the Lahore High Court has suspended a notification under which the sales tax assessment policy was revised for steel melting units and put off the hearing till October 29th 2007. Mr Shah said that if the policy were implemented, the steel melting industry would be closed.

The counsel of the petitioners, including Quality Steel, Lucky Steel Foundries and others, said sales tax was imposed on the production of manufactured goods, but the procedure had now been changed and the sales tax was levied on the consumption of electricity.

The counsel said that there was a significant increase in electricity bills while the cost of production had also been increased from 10% to 20%. He added that the Pakistan steel industry is meeting the 60% demand of the steel consumption in the country and if the policy was implemented, steel melting industry will be ruined.