The government has reduced the sales tax rate for steel melters, composite units, and re-rollers operating in the former FATA and PATA areas.
Steel melters and composite units using local remeltable scrap will pay sales tax at Rs. 20 per electricity unit consumed. Steel re-rollers using imported or local raw material to manufacture steel bars will also pay Rs. 20 per electricity unit.
However, where the consumption of imported raw material or remeltable steel scrap purchased directly from Export Facilitation Scheme registered persons exceeds 70 percent in aggregate during the preceding 12 months, eligible steel melters and composite units will pay sales tax at Rs. 5 per electricity unit consumed.
Steel re-rollers using imported or local raw material will continue to pay Rs. 20 per electricity unit consumed under the revised arrangement.
The Federal Board of Revenue (FBR) issued S.R.O. 1664(1)/2026 on Friday to amend SRO 1245(1)/2026 and provide the reduced tax rates.
For newly established businesses and closed businesses that have restarted operations, eligibility for the Rs. 5 per electricity unit rate will be determined based on quarterly imports or purchases, according to the FBR. The reduced rates continue the concession provided under the Sales Tax Act, 1990 for the former FATA and PATA territories.
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