Withholding tax on steel import doubled to 4pc

KARACHI - The government has increased the withholding tax on the import of steel from 2 per cent to 4 per cent. This will increase the cost of production for the importers up to Rs 1000 per metric ton, The Nation learnt from sources.
“This increased cost of production will be passed on to the consumers, as previously the cost of production was Rs 1000 per metric ton, which is now hiked up to Rs 2000 per metric ton,” said the source.
“When the withholding tax was 2pc, the importers of steel were supposed to file the return and keep the record. In this budget, the government increased the withholding tax and now it is 4pc. The importers of steel had decided to protest against this increment, but, a delegation of steel importers met the Finance Ministry officials the other day, and during that meeting it was decided that the importers will be exempted from keeping the record,” he added.
The source further said that after this consideration from the government officials, the steel importers decided not to protest against this hike. But it will increase the cost of purchase for the costumers of domestic and local buyers, he added.
On the other hand, Pakistan Steel Mills (PSM) will get benefit from this step as it would increase the sales of PSM.