Experts call for fair turnover tax policies for steel sector

Tax experts and representatives of the steel industry have stressed the need to end discrimination in turnover tax levies across industries. They argue for the rationalisation of turnover tax rates and an extension of the adjustment period to 10 years or more. These demands arose during a public-private dialogue organised by the Sustainable Development Policy Institute in collaboration with the Pakistan Association of Large Steel Producers, focusing on the impact of taxation policies on the steel sector, particularly the disparity in turnover tax rates. “The current turnover tax regime exhibits regressive and discriminatory characteristics, reflecting an unfair policy approach by policymakers,” stated participants. They pointed out the necessity of such reforms for fostering a conducive business environment and promoting equitable growth across industries. Contrary to perception, the International Monetary Fund opposes turnover tax levies, highlighting an ad-hoc approach in tax collection.