Ship-breakers slam FBR - Pakistan

- File photo

KARACHI: The ship-breaking industry has urged the government to provide it a level-playing field along with steel re-melting industry by immediately withdrawing controversial notifications issued recently by the Federal Board of Revenue (FBR).

Addressing protesting workers outside the Karachi Press Club (KPC) on Monday, Pakistan Ship-Breakers Association (PSBA) leaders warned the FBR that if their demands were not met, they would be left with no choice but to close down the industry.

During a press conference later on, the PSBA leaders alleged that their industry was being discriminated upon by the FBR.

An attempt is being made to cripple the ship-breaking industry which provides job to over 25,000 direct workers in the underdeveloped area of Balochistan at Gadani, the leaders maintained.

The FBR has given undue advantage in the rates of income tax and sales tax to the steel re-melting industry through recently issued SRO 140(1)/2013 dated 26.02.2013 and SRO 243(1)/2013 dated 26.03.2013, the leaders alleged.

Explaining the higher incidents of income tax on ship-breaking industry after the issuance of SRO 140, PSBA chairman Dewan Rizwan Farooqui said: The ship-breaking had been paying one per cent income tax but now we have been asked to pay five per cent. This means an increase of around 500 per cent in income tax.

Prior to this notification, he said, both the shipo-breaking industry and steel re-melting were paying 1pc income tax as per second schedule, part II claus....

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