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The Federal Board of Revenue (FBR) has announced new sales tax rates for the steel sector, with manufacturers set to pay up to Rs.30 per unit of electricity consumed.<\/strong><\/p>\n The FBR has formally notified amendments to SRO 1245, setting out revised rates for different categories of steel manufacturers.<\/p>\n Under the new rates, rerollers producing steel bars from imported or locally sourced raw materials will pay Rs. 30 in sales tax for every unit of electricity consumed.<\/p>\n Units using locally sourced re-meltable scrap will pay Rs.20 per unit, while steel rerollers operating in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) will also be charged Rs. 20 per unit.<\/p>\n However, units in the former FATA and PATA that use more than 70 percent imported raw material or re-meltable scrap will be subject to a lower rate of Rs. 5 per unit.<\/p>\n Newly established and restarted steel units will also qualify for the Rs. 5-per-unit concessional rate, subject to meeting quarterly import or procurement requirements.<\/p>\n Steel melters, composite units and rerollers will be allowed to adjust the sales tax collected through their electricity bills against their output sales tax.<\/p>\n The FBR said a steel manufacturer\u2019s category can only be changed after verification through its production monitoring system.<\/p>\n The electricity connection associated with a steel business will also remain unchanged even if the lease, ownership, or nature of the business changes.<\/p>\n<\/div>\n