Key Takeaways
- The Federal Board of Revenue (FBR) has notified 99 iron and steel manufacturers.
- Manufacturers must pay an extra Rs. 5 per unit for electricity consumed through their bills.
- Imports exceeding 70% of scrap requirements trigger the new tax.
The Federal Board of Revenue (FBR) has issued a notification requiring 99 registered iron and steel manufacturers to pay an additional Rs. 5 per unit on their electricity bills, effective immediately.
This decision is based on criteria that include the importation of more than 70 percent of scrap requirements under specified Harmonized System codes within the past year.
The notification applies specifically to registered melters, rerollers, and composite units whose operations are integrated with FBR’s computerized system.
According to the FBR, these manufacturers imported over 70 percent of their scrap needs from importers operating under the Export Facilitation Scheme during the preceding 12 months.
The tax will be collected through electricity bills issued by relevant power distribution companies at a rate of Rs. 5 per unit of electricity consumed.
The FBR stated that the list of notified manufacturers may be revised periodically based on recommendations from the Commissioner Inland Revenue or independently reviewed by the board and its field formations.
Manufacturers facing any hardship due to this new mechanism can approach their respective Commissioner Inland Revenue for review and appropriate consideration.
