The Federal Board of Revenue (FBR) has announced a major increase in the minimum value of supply of five locally-produced steel goods, which would raise the incidence of sales tax on these products.
The FBR has issued SRO.501(I)/2022 to supersede SRO 489(I)/2022 to re-fix the minimum value of supply of locally-produced steel goods for the purpose of payment of sales tax on an ad valorem basis.
Under the new notification, the minimum value of steel bars and other long profiles has been increased to Rs. 225,000 per metric ton (PMT) from the earlier value of Rs. 164,037 per metric ton.
The minimum value of steel billets has now been fixed at the enhanced rate of Rs. 195,000 per metric ton as compared to the old value of Rs. 133,813 per metric ton.
The minimum value of supply of locally-produced steel Ingots/bala has been increased to Rs. 180,000 from the old value of Rs. 126,000.
The minimum value of ship plates has been considerably raised to Rs. 172,000 per metric ton as compared to the old value of Rs. 129,584 per metric ton.
The minimum value of other re-rollable iron and steel scrap has been increased to Rs. 160,880 against the old value of Rs. 125,688 PMT.
In case the value at which the supply of the above products is made is higher than the value fixed herein, the sales tax shall be charged on such higher value, the FBR added.
Steel is most important item used in construction industry and it is disasterous to raise the valuation construction industry is already stand still for last 10 months resulting in thousands lost their jobs and work and their is no hope that this idustry will be geared up in near future unless government takes some positive steps to control and reduce construction material prices.
Rs 60,000/- increase is NOT unjustified. Govt must be taking commission of it. Construction industry will collapse, which is already under stress. Bridges and Dams budgets may need to be enhanced. Making public fool.
Rs 60,000/- is unjustified.
THE GOVERNMENT MUST DECREASE THE TAXES INSTEAD BOF INCREASING IT AN INDUSTRY WHICH PROVIDE JOB TO UNEMPLOYED SITTING BON ROAD SIDE LINES IS MUCH MORE IMPORTANT THAN ANYTHING ELSE.
ENGR.KM ASGHAR SENIOR CITIZEN AGED 79 YEARS.
What foolish Departments of Foolish Government, they are taxing the industry which is at the brink of Collapse which mean adding fuel on the Fire, 100s of 1000s jobs lost, construction and housing industry badly stopped but these wise Government is adding cost and inflation
APART FROM ABOVE MAKE SHIP PLATES INGOTS & IRON BARS EASILY AVAILABLE.
ALSO THIS MEANS AN INCREASE OF RS.5 LACS IN THE COST OF a Unit bof 120:SQ.yds.
Which is nothing as compared to it’s average sale price of RS.70 LACS.
KM ASGHAR