KARACHI: Because of high taxes, poor sales, and a walkout by employees, Siddiqsons Tin Plate Ltd. (STPL) has made the decision to close its factory.
On Thursday, the business notified its shareholders via the Pakistan Stock Exchange that it had started the official process of closing its Balochistani factory.
The notice stated, “The company has initiated the formal process for the closure of the tinplate plant located at Winder, Balochistan, in accordance with the decision of the board of directors recorded on September 4.”
Numerous companies have voiced their opposition to the severe tax policies included in the 2024–25 budget, pleading with the government to halt the nation’s continued high rate of unemployment.
The administration demonstrates that it is powerless to alter the tax policies because of IMF requirements in order to obtain a new $7 billion loan.
“The STPL determined a few causes for the decline in sales. The former Fata/Pata region’s tax exemptions, the growing use of Galvalume rather than tinplate for food packaging, and the unlawful strike by laid-off workers that prevented the winder facility from restarting are a few of them.
Provided the government takes action against the health-hazardous usage of galvalume in food packaging and develops effective control over sales tax/income tax-exempted tinplate imports in Fata/Pata that are sold to the Pakistani market, the company is prepared to reassess its current position.
“The company shall obtain permission from the Labour Court and notify the Pakistan Stock Exchange of further developments in due course, in accordance with the procedure laid down in the Industrial and Commercial Employment (Standing Orders) of 1968 for closure of an establishment,” the notice stated.
Founded in Pakistan on January 29, 1996, under the Companies Ordinance of 1984, STPL is a public limited company by shares that manufactures and sells tin plates, cans, and other steel products for use in packaging lubricants, fruits, vegetables, seafood, cooking oil, and other items.
