Erstwhile FATA, PATA: FBR notifies lower sales tax rates for steel units

ISLAMABAD: The steel melters and composite units operating in erstwhile tribal areas using local remeltable scrap shall pay reduced rate of sales tax at the rate of Rs20 electricity unit consumed.

The FBR has issued an SRO 1664(1)/2026 to amend SRO1245(1)/2026 here on Friday.

The steel re-rollers whether consuming imported or local raw material for manufacture of steel bars shall pay sales tax at the rate of Rs30 per electricity unit consumed.

READ MORE: FBR expands list of iron/steel makers subject to Rs5/unit ST

The steel melters and composite units operating in erstwhile FATA and PATA using local remeltable scrap shall pay sales tax at the rate of Rs20 per electricity unit consumed. This concessionary rate of tax is in continuation of S. No. 89 of Table-1 of the Eighth Schedule to the Sales Tax Act, 1990 providing reduced rate of sales tax for above said territory.

In case, consumption of imported raw material or remeltable steel scrap purchased directly from export facilitation scheme (EFS) registered persons exceeds seventy percent in aggregate during the immediate preceding twelve months, these units shall pay sales tax at the rate of Rs5 per electricity unit consumed; steel re-rollers operating in erstwhile FATA and PATA whether consuming imported or local raw material for manufacture of steel bars shall pay sales tax at the rate of Rs20 per electricity unit consumed.

For newly established and re-initiation of closed business entities or registered persons engaged in steel manufacturing, the criteria for eligibility for lower rate of sales tax Rs5 per electricity unit consumed shall be determined on the basis of quarterly imports or purchases, FBR added.

Copyright Business Recorder, 2026