SIALKOT, June 22: Farm machinery manufacturing and surgical forging units in Daska are facing closure after manifolds increase in the prices of steal due to imposition of sales tax and excise duty on steel by the government.

The owners of these units said the prices of steel have jumped to Rs8,000 per ton from Rs5,000. Dealers have also created artificial shortage of steel in the market by illegally hoarding the commodity.

They said the routine working has been badly hampered due to shortage of steel.

Meanwhile, the Daska Engineering and Industrial Association in a meeting termed the levy of sales tax and excise duty on steel as conspiracy against the industry.

The association has demanded immediate withdrawal of the taxes to save the industry from the financial crises.