Sales tax on scrap raised

GADDANI: Government has increased sales tax on steel scrap obtained from Gaddani Ship breaking industry. Due to sudden rise in prices of scrap buyers turned faces from Gaddani. Income tax on ship breaking has already been enhanced to 4.5 percent from just 1 percent.

According to details journalists form Karachi and Hub in large numbers visited Gaddani ship breaking site where old and in serviceable ships are broken to get steel scrap and raw material. Journalists were taken aback absence of trucks carrying scraps on their way from Karachi to Gaddani Ship breaking site.

On the occasion Chairman Pakistan Ship Breakers Association Dewan Mohammad Rizwan Farooq told journalists that government has given free hand for import of scrap from China. Thousands of tonnes of steel scraps from China was reaching rerolling mills in all the major cities especially Karachi, Lahore, Hyderabad and others. This has bleaked future of ship breaking industry and ship breakers who had imported old ships had to face millions of rupees losses and they have become bankrupt.

Dewan Farooq told that newly appointed and poplar Chief Minister of Balochistan Nawab Sanaullah Zehri can play role to steer ship breaking industry at Gaddani from fresh crisis because he also belonged to ruling PML-N of Mian Nawaz Sharif. Though it is not political issue of Gaddani but mere commercial but rulers in Balochistan and Centre belong to one party. If Nawab Zehri takes interest personally he can resolve the issue on political basis. It is the only industry which pays huge revenue to provincial and federal governments under various taxes.