ISLAMABAD, June 7: Finance Minister Abdul Hafeez Shaikh has asked the Federal Board of Revenue to reduce the sales tax rate for the steel melting industry from eight to seven per cent.

He issued the directive during a meeting with a delegation of the Steel Melters Association which said the steel melting industry was undergoing a very difficult time and its survival was at stake.

The association also sought a reduction in withholding tax from three to one per cent and the finance minister asked the FBR to discuss the issue with representatives of the steel melters.

Minister of State for Interior Imtiaz Safdar Warraich also attended the meeting.

The association’s chairman pointed that issues of sales tax, withholding tax and fuel adjustment surcharges were affecting the industry and urged the finance minister to give some relaxation so that the industry could survive in a most competitive market.

While acknowledging the problems being faced by steel melting industry, the finance minister assured the delegation of extending all possible relaxation within the extent of limited resources of the government.

The association’s chairman said imposition of fuel adjustment charges on a six monthly basis created a huge burden on the industry and proposed that the charges should be collected on a monthly basis in order to avoid ‘financial shock’.

The finance minister asked Deputy Chairman of the Planning Commission Dr Nadeemul Haq to take up the matter with the departments concerned.

Mr Shaikh also constituted a committee comprising the deputy chairman of Planning Commission, industries secretary and officials of the FBR to look into the issues and challenges being faced by the steel melting industry and submit within a month recommendations about their solution.