FBR Makes Steel Cheaper in Former FATA, PATA Areas

The government has decreased the sales tax rate for steel producers in the former Federally Administered Tribal Areas (FATA) and Pata areas. Steel melters and composite units utilizing local remeltable scrap will now pay a sales tax of Rs. 20 per unit of electricity consumed. Steel re-rollers using imported or local raw materials to produce steel bars will also be subject to the same tax rate of Rs.

20 per electricity unit. However, if the consumption of imported raw materials or remeltable steel scrap purchased directly from Export Facilitation Scheme registered entities exceeds 70 percent over the past 12 months, eligible steel melters and composite units will pay a reduced tax rate of Rs. 5 per electricity unit. Steel re-rollers using imported or local raw materials will continue to pay the standard tax rate of Rs.

20 per electricity unit. The Federal Board of Revenue (FBR) issued an order on Friday to amend a previous order and provide the reduced tax rates. The eligibility for the lower tax rate of Rs. 5 per electricity unit will be determined based on quarterly imports or purchases for newly established businesses and businesses that have resumed operations.

The reduced tax rates maintain the concession previously provided under the Sales Tax Act of 1990 for the former FATA and Pata regions. The news about the lower steel taxes in the former FATA and Pata areas was originally published on ProPakistani.