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.
