ISLAMABAD: The Federal Board of Revenue (FBR) has expanded the list of iron/steel manufacturers on which sales tax would be charged at the rate of Rs5 per unit of electricity consumed through the electricity bills issued by the respective power distribution companies (Discos).
In this regard, the FBR has issued a Sales Tax General Order No. 22 of 2026 - IR Operations Subject for amendment to STGO 16/2026.
The eligibility of said taxpayers has been determined based on criteria as provided in the SRO. 1245(1)12026, ibid, for consumption of scrap as well as electricity units for production of steel products and import of scrap under the specified HS codes.
READ MORE: ST at the rate of Rs5/unit of electricity: FBR notifies list of 99 iron, steel manufacturers
The FBR has directed the field formations that the list of taxpayers may be revised from time to time by the Board or on there commendations of the Commissioner Inland Revenue (CIR), as the case may be.
The Board or the respective field formations may independently examine the eligibility of any registered manufacturer for inclusion in or exclusion from the list in accordance with the prescribed criteria.
In case any hardship arises, the matter may be brought to the notice of the concerned Commissioner Inland Revenue for appropriate consideration.
This STGO applies to all electricity connections of the above taxpayers with
an immediate effect.
According to a STOG issued on Monday, the FBR notified the names of four registered manufacturers in the iron and steel sector (Melters, Re-Rollers and Composite Units) whose imports of scrap under HS codes of 7204.3000, 7204.4100, 7204.4990 and 7204.4940, including purchases from export facilitation scheme (EFS) and importers, directly during the preceding twelve months exceed seventy percent of their total purchases of scrap of aforementioned HS codes and whose operations are duly integrated with the FBR’s computerised system.
Accordingly, these manufacturers shall be charged sales tax at the rate of Rs 5 per unit of electricity consumed through the electricity bills issued by the respective Discos, the FBR added.
Copyright Business Recorder, 2026
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