{
  "id": 17162555,
  "title": "Electricity consumed by steel manufacturers: FBR issues new procedure for payment of additional sales tax",
  "url": "https://urgent.news/2026/10/30/electricity-consumed-by-steel-manufacturers-fbr-issues-new-procedure",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-30T02:31:45.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40446608/electricity-consumed-by-steel-manufacturers-fbr-issues-new-procedure-for-payment-of-additional-sales-tax"
  },
  "original_language": "en",
  "account": "The Federal Board of Revenue (FBR) has introduced a new procedure to handle additional sales tax on electricity used by steel manufacturers who generate their own power. This comes in the form of Sales Tax General Order No. 31 of 2026, issued on Thursday.\n\nUnder this order, steel manufacturers using captive power or self-generated electricity must pay additional sales tax based on the electricity units they consume for steel production during a specific tax period. The amount payable is determined by the steel manufacturer and should be deposited by the 5th day of the following month, without needing any invoice.\n\nThe documentation for this tax payment involves creating a special PSID challan/CPR, which is only available to steel manufacturers under this category. Upon payment, the amount is reflected in the STR-7 Row 23c, \"Additional Sales Tax on electricity supplied to Steel Melters and Re-Rollers\", of the sales tax return. This amount will also be counted as input tax, reducing the output sales tax for the same period, in accordance with the Sales Tax Act, 1990 and the Thirteenth Schedule.\n\nThe Commissioner Inland Revenue responsible for the area will verify the electricity consumption data maintained by the registered steel manufacturer, ensuring compliance with the Sales Tax Act and the terms set out in the 13th Schedule. The registered person must also accurately declare their steel production and supplies in the sales tax return, following the rules laid out in the Sales Tax Act and relevant regulations.\n\nThe FBR will monitor the implementation of this new procedure, with penalties for default, late payments, or incorrect declarations of electricity units. This new order will be in effect from July 1, 2026.",
  "summary": "ISLAMABAD: The Federal Board of Revenue (FBR) has issued a new procedure for payment and adjustment of additional sales tax on electricity consumed by steel manufacturers operating on captive power or self-generation. In this regard, the FBR on Thursday issued a Sales Tax General Order No. 31 of 2026 to notify the “Additional Sales Tax Challan” and computerized payment receipt for the steel…",
  "key_points": [
    "FBR issues Sales Tax General Order No. 31 of 2026 for steel manufacturers.",
    "Steel makers using captive power must pay additional sales tax on electricity.",
    "Payment due by 5th day of following month, reflected in STR-7 Row 23c."
  ],
  "editors_take": "The new tax procedure shifts the burden of self-reporting electricity consumption onto steel manufacturers, requiring them to manage their own tax liabilities through specialized documentation and internal data verification.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}