October 15, 2015
MEMBERS LAHORE CIRCLE
THE URGENT MEETING OF EXECUTIVE COMMITTEE (LAHORE CIRCLE)
OF THE PAKISTAN STEEL RE-ROLLING MILLS ASSOCIATION
HELD ON FRIDAY OCTOBER 09, 2015 AT 11.00 A.M. AT
REGISTERED OFFICE, LAHORE
members of the Executive Committee were present:-
1. Mian Arif Mehmood Vice-Chairman
2. Mr. Asmat Pervaiz Malik Member Executive Committee
3. Mian Ahmad Hassan Member Executive Committee
4. Mr. Javed Iqbal Mughal Member Executive
5. Hafiz Muhammad Akbar Patron-in-Chief PSRMA
members also attended the meeting:
1. Mian Murad Ashraf Aryan Steel
2. Mian Tariq Waheed M/s Eastern Steel Industries
3. Mian Manzoor Ahmad New Shalimar Steel
4. Sh. Muhammad Hanif M/s S.H. Steel Mill
5. Khawaja Javed Iqbal M/s Mehmood & Company
6. Sufi Muhammad Azeem Sufi Steel Industries(Pvt)Ltd.
7. Haji Maqsood Ahmad M/s M. Yaqoob & Bros Steel R/R
business was transacted:
Confirmation of minutes of the previous meeting Dated. 26-03-2015,
06-05-2015 & 10-07-2015.
To discuss Notices for License Fee issued by the Punjab Local Govt. under
To discuss the letter dated 05-10-2015 having No.1/CP&R/MEL/CCP/2015
received from Competition Commission of Pakistan regarding Meeting dt
20-10-2015 of the Steel Industry’s stake holders.
To discuss Show Cause Notices received from LTU Karachi regarding re-heating
furnaces with alternate fuel/energy sources instead of electricity and
formation of Committee by the FBR in order to ascertain the exact industrial
Any other point with the permission of the Chair.
MIAN ARIF MEHMOOD
1. Recitation: The meeting was started with
recitation of verses from the
Holy Quran by Hafiz Muhammad Akbar Patron in Chief PSRMA
followed by translation into urdu.
Fateha was offered for the wife of elder brother of Mr. Asmat Pervaiz Malik
and prayed that Allah the all Mighty and Merciful may rest the departed soul
in peace in the heaven and grant courage to the heirs to bear this
3. CONFIRMATION OF MINUTES.
Minutes of the last meetings dt 26-03-2015, 06-05-2015 & 10-07-2015. were
reviewed and confirmed unanimously by the Executive Committee.
4. To discuss Notices for License Fee issued by the Punjab
Local Govt. under Ordinance 2001.
The house was apprised about the Notices being issued to our members
having re-rolling units under City District Govt Lahore jurisdiction.
It was informed that licence fee of steel factories engaged in manufacturing
of Iron bars, Girders, T-iron etc has since been increased to
Rs.200000/-Vide Serial NO.31 of Notification No.198/DDO/R/T dated 10-06-2015
applicable w.e.f. 01-07-2015. This fee was previously applicable to the
tune of Rs.13000/-(Thirteen thousand only) and such an extraordinary
increase of 1538% is neither under stood nor justified.
The house was infomd that Administrator City District Govt has been asked to
consider the forgoing facts and in the meanwhile direct the Concerned
Enforcement Inspector not to create harassment and a delegation comprising
of our representatives be given time for meeting in order to resolve the
issue. The Executive Committee decided to deal with the issue mutually by
hiring the services of a good lawer and Mian Arif Mehmood Vice-Chairman was
made responsible to tackle the issue.
5. To discuss the letter dated 05-10-2015 having
No.1/CP&R/MEL/ CCP/2015 `received from Competition Commission of Pakistan
regarding Meeting dt 20-10-2015 of the Steel Industry’s stake holders.
The Competition Commission of Pakistan vide his letter No. 01/CP&R/MEL /CCP/2015
dated 5-10-2015 has informed about the meeting of the Steel Industry Stake
holders scheduled to be held on 20-10-2015. This is with reference to
Complaint lodged in the Competition Commission of Pakistan wherein concerns
have been raised about the current mechanism of sales tax rate being charged
to the steel melting and rerolling mills operating on captive energy
produced from baggase and rice husk. The Government of Pakistan in the
budget 2014-2015 amended the Special Sales Tax Procedure, 2007 vide SRO
421(I)/2014. Accordingly sales tax charged to the plants operating on
electricity produced from bagasse and rice husk are taxed higher in
comparison to mills procuring electricity from WAPDA /Disco’s. As per the
information provided by the complainant, the rate of sales tax charged to
the plants operating on bagasse and rice husk is 17% on the value of the
steel produced whereas the plants operating on Wapda/Disco’s electricity are
charged rupees seven on the per unit of electricity consumed.
The modus operandi of charging different rate of sales tax to the plants
operating on bagasse and rice husk may have the object or effect of
distorting competition in the steel market.
Hafiz Muhammad Akbar Patron in Chief informed that Mr. Khalid Javaid
Chairman PSRMA shall attend the meeting. He also informed that Mian
Muhammad Saeed of Madina Steel Industry Kasur has been asked to convey the
view point of Melters Association which would be followed by PSRMA as well.
6. To discuss Show Cause Notices received from LTU Karachi
regarding re-heating furnaces with alternate fuel/energy sources instead of
electricity and formation of Committee by the FBR in order to ascertain the
exact industrial practice.
The house was informed that our certain members at Karachi are in receipt of
show cause Notices under sec 11 of the Sales Tax Act 1990 from
the LTU Karachi who is of the views that re heating of furnaces with
alternate Fuel/energy sources instead of electricity is not covered under
the Special Procedure Rules 2007 and hence evading payment of sales tax.
The house was informed that Mr. Khalid Javaid Chairman PSRMA met Mr. Shahid
Hussain Asad Member FBR and discussed the issue. Who made a call to the
Chief Commissioner Karachi and asked to suspend the expected action who was
about to deliver the decision. In order to ascertain the exact industrial
practice in vogue and violation of Special Procedure, if any, a committee
comprising of the following has been constituted by the FBR vide
No.3(5(ST-L&P/2007(PC/136447 dated 5-10-2015:-
Mr. Aamir Amin Bhatti, Additional Commissioner (IR)RTO Gujranwala Chairman.
Ch. Anwar Rasheed, Additional Commissioner (IR) Lahore Member.
Syed Mohsin Ali Shah Deputy Commissioner (IR) LTU Karachi Member.
The Committee will visit the business premises of selective composite units
and re-rolling mills at Karachi, Lahore and Gujranwala and record its
findings on the issue as raised by LTU Karachi.
There being no other point to be discussed the meeting ended with a vote of
thanks to the Chair.
For THE PAKISTAN STEEL RE-ROLLING MILLS
S. MAZHAR HUSSAIN NAQVI,