Islamabad, Oct 25: FBR Lowers Minimum Value of Locally Produced Steel Goods for Tax Purposes
In order to lower the incidence of sales tax on various locally produced steel commodities, the Federal Board of Revenue (FBR) has significantly reduced the minimum value of supply for these goods.
To re-fix the minimum value of supply of locally made steel commodities for the purpose of paying sales tax on an ad valorem basis, the FBR issued SRO.1636(I)/2024, superseding SRO 501(I)/2022.
The previous minimum value of Rs. 225,000 per metric ton (PMT) for steel bars and other long profiles has been lowered to Rs. 205,000 PMT under the new announcement.
In contrast to the previous value of Rs. 195,000 per metric ton, the minimum value of steel billets has been lowered to Rs. 175,000 per metric ton.
Instead of Rs. 180,000 PMT, the minimum value of supply for domestically made steel ingots or bala has been reduced to Rs. 160,000 per metric ton.
In comparison to the previous value of Rs. 172,000 per metric ton, the minimum value of ship plates has been significantly reduced to Rs. 154,000 per meter ton.
Other re-rollable iron and steel scrap still has a minimum value of Rs 160,880 per metric ton, which has not altered.
According to the FBR, sales tax will be applied to the greater value if the supply of the aforementioned products is made for a larger amount than the amount specified below.
