ICCI calls for withdrawal of 4 percent withholding tax on steel industry

Islamabad: A steel sector delegation of local industrialists led by Shaban Khalid, President, Islamabad Chamber of Commerce & Industry (ICCI) called on Ms. Rana Seerat, Chief Commissioner, Large Taxpayers Unit, FBR and asked for withdrawal of 4 percent withholding tax on steel industry’s local purchase as it is badly hurting their production activities.

The delegation also apprised her of the different issues being faced by the steel industrialists and requested for remedial measures to facilitate the growth of steel industry.

Many local steel industrialists including Mr. Khalid Javed, Mr. Nasir Khan, Mian Aslam Farid, Sheikh Javed, Mr. Ammad Naveed and Mr. Umer Rafique were in the delegation.

Shaban Khalid said that steel melting furnaces contribute almost 80 percent to the total steel production in the country, but withholding tax on local purchase and high electricity tariffs are making them uncompetitive due to which these furnaces could inch towards collapse. The taxation policies should facilitate the steel industry instead of creating more hurdles in its growth.

He said steel industry is also facing some problems in sales tax adjustment due to electricity bills and FBR should make this process easier for them. He said sufficient time is not given to submit response of tax notices and FBR should address such concerns of taxpayers.

Ms. Rana Seerat, Chief Commissioner, LTU, FBR assured the delegation members that issue of 4 percent withholding tax on local purchases will be taken up with Member IR, FBR. She said FBR is committed to develop a fair tax system based on the principals of equality and justice.

She appreciated the contribution of industrialists for improving the local economy and said that FBR will look into the sales tax adjustment issue to remove the concerns of taxpayers. She said the current Chairman FBR is determined to bring further improvement in FBR to facilitate the taxpayers.