FBR raises electricity sales tax burden for steel industry
“FBR has tightened sales tax rules for electricity consumed by steel units, with re-rollers to pay Rs30 per unit and specific concessional rates subject to condi…”
IISLAMABAD —The Federal Board of Revenue (FBR) has tightened the conditions for reduced sales tax rates on electricity consumed by the steel industry, including units operating in former FATA and PATA areas and steel re-rollers., steel re-rollers will pay sales tax of Rs30 on every unit of electricity consumed.
The conditions for steel melters and composite units in FATA and PATA areas have also been tightened. Under the revised rules, FATA and PATA steel melters and composite units using locally sourced scrap will be charged Rs20 per unit in sales tax.
A reduced rate of Rs5 per unit will apply to units using more than 70 percent imported raw material or scrap. The concessional Rs5-per-unit rate will be determined on the basis of quarterly purchases or imports.
"Stay connected with Aman-e-Pakistan for ongoing live reporting and verified investigative updates."
The sales tax collected through electricity bills will be treated as advance tax and may subsequently be adjusted against output tax. The applicable sales tax liability will remain attached to the electricity connection even if its ownership is transferred or the connection is leased to another party.
Continue Reading: More in Business
Swipe or click arrows to explore Business desk coverage
