Gwadar: Despite the government’s announcement of tax concessions for local construction material suppliers working on Gwadar projects, the steel sector alleges it is unable to take advantage of the benefit due to a lack of a sufficient framework, while building material imports continue.
Read More: FBR increases value of steel for enhanced GST collection
The sector has told the FBR and other ministries concerned in this respect that Pakistani steel companies are unable to operate on big projects in Gwadar because they are unable to obtain GST/FED exemptions.
Local enterprises selling tax-free steel to the Gwadar Free Zone, according to the producers, have no way of reclaiming the sales tax paid on the materials needed to make the completed products. Apart from the lack of a clear procedure for obtaining tax exemptions, the steel sector complains that contractors working in Gwadar Free Zones are not using local companies.
Read More: Steel price goes up further as input cost increases
It has asked the government to allow taxes and tariffs on all inputs, including raw materials and wastages, to be adjusted as inputs in the monthly sales tax return. According to the industry, this will reduce import costs and stimulate industrialization in the country. It should be noted that the National Steel Council raised this matter with FBR in September of last year, but no action has been taken since then.
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