Islamabad: Federal Board of Revenue (FBR) has imposed sales tax Rs 5 per electricity unit on 100-K manufacturers, steel melters, re-rollers and composite units in respect of iron and steel sectors.

The steel products are likely to go more expensive due to imposition of sales tax.

FBR has issued new sales tax general order for steel industry. Sales tax of Rs 5 per unit of electricity has been imposed on selected companies of steel industry.

The mechanism applies to units dealing in scrap under HS codes 7204.3000, 7204.4100, 7204.4990 and 7204.4940, including purchases from EFS importers, and whose operations are integrated with FBR's computerized system. FBR said the list of taxpayers 'may be revised from time to time' by the board or on recommendations of the Commissioner Inland Revenue. Field formations have also been empowered to independently examine eligibility for inclusion or exclusion. In case of hardship, matters can be taken up with the concerned CIR.

The respective DISCOs will charge Rs 5 per unit on account of sales tax through electricity bills.

Naw tax will be imposed on melters, rerollers and composite units. The tax stands imposed on the companies which meet the specific conditions regarding import of scrap.

According to FBR this step is aimed at making more effective tax system in steel sector.

Order will stand implemented under August 4, 2026 notification.