Incidence of GST to go down: Minimum value of 4 steel goods drastically cut

ISLAMABAD: The Federal Board of Revenue (FBR) has drastically cut the minimum value of supply of four locally-produced steel goods, which would decrease the incidence of sales tax on these products.

The FBR has issued SRO.1636(I)/2024 to supersede SRO 501(I)/2022 to re-fix the minimum value of supply of locally-produced steel goods for the purpose of payment of sales tax on ad valorem basis.

Under the new notification, the minimum value of steel bars and other long profiles has been decreased to Rs. 205,000 per metric ton (PMT) from the earlier value of Rs 225,000 PMT.

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The minimum value of steel billets has now been fixed at the decreased rate of Rs175,000 per metric ton as compared to the old value of Rs 195,000 per metric ton.

The minimum value of supply of locally-produced steel Ingots/bala has been decreased to Rs160,000 per metric ton against Rs180,000 PMT. The minimum value of ship plates has been drastically decreased to Rs154,000 per metric ton as compared to the old value of Rs172,000 per metric ton.

The minimum value of other re-rollable iron and steel scrap has not been changed and it would remain Rs 160,880 per metric ton.

In case the value at which supply of above products is made is higher than the value fixed herein, the sales tax shall be charged on such higher value, the FBR added.

Copyright Business Recorder, 2024