ISLAMABAD: Pakistan Association of Large Steel Producers (PALSP) has urged the Federal Board of Revenue (FBR) to recover FED from steel units that were established in certain specialised areas.

In a letter to the chairman FBR, the body said that federal excise duty (FED) should be recovered from steel units established in former federally and provincially administered tribal areas (Fata and Pata), subsidiary units in sugar mills and those running on self-generated basis.

“Unhealthy competition has been created in the markets of certain areas due to non-recovery of FED from such units,” the PALSP letter read.

The federal government had levied FED on steel furnaces and rerolling mills in the budget 2019-20 with effect from July1, 2019 and the levy was extended to Fata/Pata steel units as well.

The FED on steel units running in sugar mills and on self-generated power was also subject to an independent metering panel system under lock and key of LTU.

Incidentally, the FBR had issued Sales Tax General Order (STGO) No.105/2019 on September 13, 2019 allowing input adjustment on closing stocks up to June 30, 2019.

At the same time, the FBR has sought information regarding inputs in production of steel and the supply on monthly basis from the start of current fiscal year.

The PALSP letter to the chairman FBR also highlighted that the officials have not made any recovery of FED from the around eight steel mills operating in sugar mills and around four furnaces at self power generation units in Multan and Hyderabad and few units in old Fata areas.

“In [former] Fata and Pata, even the registration process has not been done so far by the concerned FBR authorities, while in case of steel mills running in sugar mills and self-power generation, no independent and exclusive metering panel system has been installed so far,” the letter said.

Published in Dawn, October 6th, 2019