ISLAMABAD: The Federal Board of Revenue (FBR) has considerably increased the minimum value of supply of six locally-produced steel goods, which would raise the incidence of sales tax on these products.

The FBR has issued SRO 501(I)/2022 to supersede SRO 489(I)/2022 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 Rs 225,000 per metric ton (PMT) from the earlier value of Rs164,037per metric ton. This reflects a big increase of Rs 60,963 per metric ton in the minimum value of steel bars.

The minimum value of steel billets has now been fixed at the enhanced rate of Rs 195,000 per metric ton as compared to the old value of Rs133,813 per metric ton.

The minimum value of supply of locally-produced steel Ingots/bala has been considerably increased to Rs180,000 from the old value of Rs126,000.

The minimum value of ship plates has been considerably raised to Rs172,000 per metric ton as compared to the old value of Rs129,584 per metric ton.

The minimum value of other re-rollable iron and steel scrap has been increased to Rs 160,880 against the old value of Rs125,688 PMT.

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, 2023