Islamabad: (RightNow) The Federal Board of Revenue (FBR) has imposed a Rs 5 per unit sales tax on electricity usage by steel manufacturers. This decision follows an amendment to Sales Tax General Order No. 16, adding five major steel manufacturers to the sales tax list.

Rasheed Steel, Batala Steel Industries, Royal Steel, Platinum Steel Mill, and KBS Steel Furnace are now included in the sales tax list. The new sales tax will be applied immediately to their electricity connections.

According to the FBR, taxpayer eligibility is determined under SRO 1245, which includes the use of scrap and electricity in steel production as criteria.

This measure is expected to impact the steel manufacturing sector, with the government anticipating an increase in revenue. The action aims to control electricity usage and boost tax revenues.

It is noteworthy that the FBR has also included the import of scrap under specific HS codes in the eligibility criteria. Changes to the list may be possible upon the recommendation of the relevant Commissioner Inland Revenue.