Salt association seeks end to sales tax

Official says sector has potential to earn $1b through exports

ISLAMABAD:

The All Pakistan Salt Association (APSA) has called for withdrawing the sales tax imposed in budget on the mining sector.

During a meeting with Adviser to PM on Commerce Abdul Razak Dawood, the association requested the adviser to withdraw the sales tax the government had imposed in the current budget 2021-22.

The association president said that they were launching a huge project in Gwadar for making Sun Salt for industrial use. The project size is around $750 million and it will be completed in phases - the first phase will be completed in two years. After the start of the first phase, around $400-500 million worth of exports will be made from that project.

Another senior association member shared his proposed project of soda ash in Khushab. He said that if the project was initiated successfully, then a sizable number of locals would be employed and exports would also increase.

During his presentation, the APSA president told the meeting that though Pakistan had the second largest reserves of salt in the world, exports from the country stood very low.

He was of the view that due to primitive methods of mining, the wastage percentage was very high. Discussing the role of the government, he shared the industry view that due to neglect the chemical industry related to salt could not grow.

He believed that if the government provided patronage, then up to $1 billion could be earned from the export of salt to the chemical industry around the world.

The salt association requested the adviser to approach the Federal Board of Revenue (FBR) for revision of sales tax at the mining stage. The PM aide agreed to take up the case with the relevant authorities.

Published in The Express Tribune, July 9^th, 2021.

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