The Federal Board of Revenue (FBR) has amended the Sales Tax General Order and extended the facility of a Rs5 per unit sales tax rate on electricity to five more steel units.
According to an FBR notification, the new rate of Rs5 per unit will apply to all electricity connections of the relevant steel manufacturers. The eligibility of the companies has been determined based on their steel production and the quality of scrap used by the units.
The five newly added units include Rasheed Steel, Batala Steel, Royal Steel, Platinum Steel Mills and KBS Steel Furnace.
The notification states that the new sales tax rate will take effect immediately. The FBR may also revise the list of eligible steel units whenever necessary and can add or remove units based on the applicable criteria.
Under the decision, the electricity consumed by the listed steel units will be subject to a sales tax rate of Rs5 per unit.