ISLAMABAD: The Federal Board of Revenue (FBR) has increased the minimum value of supply of five locally-produced steel goods, which would raise the incidence of sales tax on these products.
The FBR has issued SRO 489(I)/2022 to supersede SRO 985(I)2021 and SRO 1465(I) 2021 to re-fix the minimum value of supply of locally-produced steel goods for the purpose of payment of sales tax on ad valorem basis.
Under the new notification, the minimum value of steel bars and other long profiles has been increased to Rs164,037 per metric ton (PMT) from the earlier value of Rs153,000 per metric ton.
The minimum value of steel billets has now been fixed at the enhanced rate of Rs133,813 per metric ton as compared to the old value of Rs131,000 per metric ton.
Non-taxable areas: FBR conducting survey of industrial units
The minimum value of supply of locally-produced steel Ingots/bala has not been changed.
The value has been fixed at Rs126,000 PMT as compared to the same old value of Rs126,000 per metric ton.
The minimum value of ship plates has been considerably raised to Rs129,584 per metric ton as compared to the old value of Rs126,000 per metric ton.
The minimum value of other re-rollable iron and steel scrap has been increased to Rs125,688 PMT against the old value of Rs119,000 per metric ton.
In case the value at which supply of above products is made is higher than the value fixed herein, the sales tax shall be charged on such higher value, the FBR added.
Copyright Business Recorder, 2022