By Mukhtar Alam:

Fearing that the economic and business activities will deteriorate further in the country in the wake of global Coronavirus onslaught, a consortium of key players in the country’s steel sector has urged the government to take extraordinary measures leading to the motivation of the depressed steel industry in the country.

The joint body of steel industrialists, the National Steel Advisory Council (NSAC) the strategic steel sector, which is a huge taxpayer, needs improvement in its cash flow to continue playing its role in ensuring employment is sustained in the country.

The NSAC, in a statement, observed that the Coronavirus crisis is going to create a severe cash crunch and a drastic reduction in demand.

“These factors are sure to leave many businesses bankrupt and render hundreds of thousands unemployed unless the government acts immediately”.

It was further said that steel Industries across the world have been granted subsequent support from their respective governments in terms of tax relief, loans, markup relief, utility bills, interest rates, etc, but unfortunately, the recently announced Economic Relief Package by the Government of Pakistan has neglected the local steel manufacturing sector, though steel is exported from Pakistan.

At this critical time, the government needs to motivate steel industry, which is a backbone of industrialization, is mainly in the private sector, the statement issued by NSAC Chief Executive Officer, Meraj A Khwaja, added, while the government was urged to defer and forego some of the taxes being charged to the private steel sector.

The NSAC suggested that turnover tax U/S 113 for industry should be reduced to 0% from 1.5% for 2020 and 2021, while a 100% adjustment of Sales Tax input may be allowed u/s 8 b against the available output.

The consortium demanded that the government should remove the 3% additional sale tax on raw material imports; immediately release all pending income tax and sales tax refunds.

The industrialists urged the government to stop charging of advance tax on raw material imported by the industry for 2020 in order to enhance cash flow.

They also desire stoppage of collection of advance tax on goods, services, and contracts u/s 153 for 2020, while on the other hand payment of EOBI/Professional Tax/WPPF and WWF for 2019-20 to be waived off.

“With the production coming to halt, demurrage charges must be waived off for the lockdown period.”

The NSAC also demanded a waiver of fixed charges on electricity during the lockdown, while calling upon the government to include and take the local steel industry as part and parcel of the construction sector.