ISLAMABAD: The steel industry is urging the government to ensure equitable taxation by reducing the turnover or minimum tax rate to 0.5% from the existing 1.5% in the forthcoming budget for 2024-25.
The Pakistan Association of Large Steel Producers (PALSP) has appealed to Finance Minister Muhammad Aurangzeb to eliminate discrimination in the levy of turnover or minimum tax on the steel sector, aligning it with other industrial sectors.
PALSP’s communication highlights that while some favoured industries enjoy a reduced turnover tax of 0.5%, others, including the struggling steel sector, face higher rates of up to 1.25%. Despite promises of reduction in the Finance Bill 2023-24, the tax measure was not implemented in the Finance Act.
The steel industry emphasises the need for equal treatment across all sectors to foster a conducive business environment for growth and investments. Amid economic challenges, the industry asserts its crucial role in the country’s economy, contributing significantly to revenue generation and job creation.
The current economic difficulties, including currency devaluation and import dependence on raw materials, have exacerbated the steel industry’s plight. Despite its substantial contributions, the industry faces an uphill task due to high turnover tax rates and financial constraints.
Experts note that reducing turnover tax is feasible and essential for industrial growth, especially considering the sector’s importance in revenue generation and employment.
The steel industry’s plea for a reduced turnover tax rate and an extended adjustment period aims to stabilise operations and prevent closures amidst challenging economic conditions.
“We sacrificed our land and homes for this dam, yet we continue to suffer,” says protester Taifoor Khan
Court was informed PBC and Islamabad High Court Bar had called for a strike on May 9, 2024
Session of joint sitting of Parliament was originally convened on Jan 24 under Article 54 of the Constitution
IHC’s Justice Mohsin Akhtar Kayani hears case regarding alleged kidnapping of a citizen Ali Muhammad
Show will feature former cricket team captain Rashid Latif, Mohammad Amir and Ahmed Shehzad
Petition argues Peca Amendment Act was an “attack on press freedom” and requests a judicial review