Islamabad: (RightNow) The Federal Board of Revenue (FBR) has imposed a sales tax of Rs 5 per unit on electricity usage for over 100 registered iron and steel manufacturers. This move is likely to increase the prices of steel products.

FBR has issued Sales Tax General Order No. 14, deciding to levy Rs 5 sales tax per unit of electricity on specific manufacturers. This order is issued under the Sales Tax Act 1990.

According to the notification, this tax applies to manufacturers whose scrap purchase exceeds 70%. FBR has also released a list of the relevant manufacturers.

FBR has instructed electricity distribution companies to collect sales tax from these manufacturers in their bills. The list may be revised periodically.

It is noteworthy that this step could lead to an increase in steel product prices. Manufacturers facing difficulties can contact the relevant commissioner.