Govt to levy PKR 5 per unit sales tax on electricity for 99 steel mills

The federal government has imposed a PKR 5 per unit sales tax on electricity consumed by 99 iron and steel manufacturers as part of efforts to document the sector and curb revenue leakages linked to scrap imports.

 

Under an FBR Sales Tax General Order, the levy will be collected through monthly electricity bills issued by DISCOs. It applies to melters, re-rollers, and composite units whose imports and direct purchases of scrap account for more than 70% of their total scrap purchases over the previous 12 months.

 

The measure covers businesses dealing in specified scrap HS codes integrated with the FBR's computerized system. The FBR said the list of affected taxpayers may be revised periodically, with major steel producers, including Amreli Steels, Mughal Iron & Steel Industries, Ittefaq Iron Industries, and Fazal Steel, among those currently covered.