The duty on import of steel products of secondary quality will be reduced to 10 percent from existing 20 percent in the next budget with the purpose to have uniform 10 percent duty on both the primary and secondary products to discourage the under invoicing.
Sources told Business Recorder that withholding tax for commercial importers would also be reduced to 2 percent from existing 5 percent and to maintain the existing rate of withholding tax levied on industrial importers at one percent in the next budget to ensure availability of billets, bars, hot rolls coils, cold rolls coils and steel bars.
The EDB has submitted these proposals to the FBR and subsequently held a number of meetings with the later for incorporating these proposals in the next budget. The EDB has also proposed that zero percent sale tax facility may also be extended to Alloy/special steel parts supply chain as it was extended to the forging for surgical/dental, truck dampers and trailers semi trailers last year vide SRO 509, 548 and 462.
The FBR has agreed, in principle, to reduce these duties aimed at facilitating the steel sector, affected by high costs of raw materials in the international market and the ongoing energy crisis, said an official in the Ministry of Industries and Production.
The prices of steel products have increased manifold during the last few months and the government wanted to reduce their prices at home by facilitating the steel sector in the next budget by providing some duty concessions on import of raw materials.
The government is also considering allowing import of raw material from India and may include it in the positive list through trade policy to be announced after the budget. The raw materials may be allowed to be imported from India included DRI, steel billets and hot rolled coils to meet their shortage in the local market. The list may also be included iron ore and sponge iron as well, they added.