FBR Forces More Steel Makers to Pay Rs. 5/Unit Electricity Tax

The Federal Board of Revenue (FBR) has broadened the scope of iron and steel producers required to pay a Rs. 5 per unit electricity tax. The tax authority issued Sales Tax General Order (STGO) No. 22 of 2026, an amendment to STGO 16 of 2026, which adds four iron and steel manufacturers to the list. This new tax applies to melters, re-rollers, and composite units that meet specific criteria related to scrap consumption, electricity usage, and imports of scrap under certain HS codes.

FBR revealed that these manufacturers imported over 70 percent of their total scrap purchases under the relevant HS codes directly within the past year, including acquisitions through the Export Facilitation Scheme and from other importers. Their operations are interconnected with the FBR’s computerized system. The Rs. 5-per-unit sales tax will be implemented immediately for all electricity connections of the listed manufacturers.

The FBR mentioned that this list may be updated periodically. Registered manufacturers can also be added or removed based on an examination by the Board or on the recommendation of the relevant Commissioner Inland Revenue.