The federal government imposed Rs30 per unit sales tax on industrial consumers, it was reported on Wednesday.
According to a notification issue by Federal Board of Revenue, the implementation of the new sales tax on consumers in the industrial sector will start from July 1, 2026.
The Federal Board of Revenue has imposed taxes based on the nature of business activity. Sales tax has been levied on steel melters, re-rolling mills, and the steel melting and re-rolling industry. Sales tax on a per-unit basis has also been imposed on captive power producers. Tax has been imposed on units based on consumption.
Manufacturers using local scrap will be required to pay sales tax of Rs 30 per unit. Tax of Rs5 per unit will be levied on imported scrap where the annual rate exceeds 70 percent.
Steel manufacturers utilizing captive power and self-generated electricity will be required to pay a tax of Rs35 per unit.
Units integrated with the FBR system will be liable to pay a tax of five rupees per unit. Units consuming 500,000 units per month will be classified as steel melters and composite units.
Those consuming fewer than 500,000 units will be classified as steel re-rolling mills. Failure to pay sales tax will result in the disconnection of the service by the relevant company.
