On July 1, 2017, the Federal Board of Revenue (FBR) amended the rules in SRO 583 (I) / 2017 as regards the payment of increased sales tax by the steel industry. The FBR has increased the sales tax to 10.5% from 9% for the consumption of each distinct amount of electricity consumed for the production of steel bolts, raw blocks and mild steel products without stainless steel.
However, the payment of the sales tax of 10.5% per electricity unit is the final discharge of tax for the steel circulation plants and composite units of melting and re-rolling including their preheating sections, which are powered by other fuels than electricity.
The FBR also increased the sales tax rate for ship breakers. They will now pay sales tax of Rs 8,500 per ton, increased from earlier rates of Rs 8,000 per metric ton, on re-rollable scrap and other materials obtained from ship breaking.
