FBR Raises Sales Tax Valuation for Locally Made Steel Products

The Federal Board of Revenue has increased the minimum value for the supply of locally produced steel products for the calculation of sales tax, issuing new valuation rules for the steel sector.

The revised rates have been notified through S.R.O. 2402(I)/2025, which supersedes the earlier Notification No. S.R.O. 1636(I)/2024. The new valuation framework took effect on December 10.

According to the notification, the FBR has re-fixed the minimum value of supply of locally produced steel goods on an ad valorem basis for the purpose of sales tax. The revised values apply to steel bars, steel billets, steel ingots or bala, and ship plates.

For steel bars and other long profiles, the minimum value inclusive of sales tax will now be based on the average national retail price of steel bars.

This average will be calculated using retail prices in Lahore, Karachi, Peshawar, Quetta, Rawalpindi and Islamabad, as published monthly by the Pakistan Bureau of Statistics, minus Rs. 1,500 per metric ton.

In the case of steel billets, the minimum value inclusive of sales tax has been fixed at 85 percent of the value.

For steel ingots or bala, the minimum value inclusive of sales tax has been set at 80 percent of the value.

For ship plates, the minimum value inclusive of sales tax will be 75 percent of the value.

Officials said the revised minimum valuation is aimed at ensuring proper tax collection, reducing under-invoicing, and improving documentation in the steel manufacturing sector.