KARACHI: Siddiqsons Tin Plate Ltd (STPL) has decided to close its factory due to heavy taxation, low sales, and a workers’ strike.
The company informed its shareholders through the Pakistan Stock Exchange on Thursday that it has initiated the formal process to shut down its plant located in Balochistan.
“As per the decision of the board of directors recorded on Sept 4, the company has initiated the formal process for the closure of the tinplate plant located at Winder, Balochistan,” said the notice.
Many industries have been raising their voices against the harsh taxation measures announced in the budget for 2024-25, asking the government to stop further unemployment in the country.
The government shows its inability to change the taxation measures due to IMF conditions for securing a new loan of $7 billion.
“The STPL identified some reasons for the reduction in sales. These include tax exemptions in the erstwhile Fata/Pata region, the increased use of Galvalume for food packaging instead of tinplate, and an illegal strike by retrenched workmen preventing the winder plant from reopening.”
The company is ready to review the current position provided the government takes action against the health-hazardous use of Galvalume in food packaging and establishes effective control over sales tax/income tax-exempted tinplate imports in Fata/Pata which is sold to the Pakistani market.
“As per the procedure laid down in the Industrial and Commercial Employment (Standing Orders) of 1968 for closure of an establishment, the company shall obtain permission from the Labour Court, and intimate the Pakistan Stock Exchange of further developments in due course,” the notice said.
Incorporated in Pakistan on Jan 29, 1996 as a public limited company by shares under the Companies Ordinance 1984, STPL is engaged in the manufacturing and sale of tin plates, cans, and other steel products for the packaging of cooking oil, fruits, vegetables, seafood, lubricants, etc.
Published in Dawn, September 6th, 2024