Pakistan: Dewan Rizwan Farooqui, chairman
of the Pakistan Ship Breaker’s Association, is planning a protest against the
Federal Board of Revenue (FBR), claiming that discriminatory tax treatment has
'made it difficult to continue our business activities'. And he has warned: 'If
our demands are not met, we will stop our operation.'
According to the association, the sales tax
for shipbreakers has risen 23% and has created huge losses whereas smelters'
sales tax has been greatly reduced. Farooqui claims the nation’s former finance
minister Saleem Mandviwala had agreed that the industry would pay sales tax at
the time of clearance and that the income tax rate would be 2.75%. 'However,
regarding the reduced income tax rate at the import stage, the FBR is now
refusing to honour the commitment made by the finance minister,' the chairman
says. This 'injustice' means the shipbreaking industry has become uncompetitive
compared with other melting sectors which are 'still enjoying the tax
benefits', he adds.
Pakistan's steel consumption amounts to
roughly 4 million tonnes per annum, of which the shipbreaking sector is said to
meet 20% of the total. Some 32 active shipbreaking units have paid more than
Pakistani rupee 1.5 billion worth of income tax as well as Pakistani rupee 14
billion sales tax over the last four years, according to Farooqui.
'We do not want any confrontation with the
government and protest will be peaceful,' he asserts. 'But in case the
government does not pay attention to our voice, we will have no other option
but to stop work.'
Source: recycling
international. 3 April 2013
No comments:
Post a Comment