FBR Announces Significant Increase in Steel Valuation

The Federal Board of Revenue (FBR) in Pakistan has recently announced a hike in the minimum value of supply of five locally-produced steel goods. 

This would result in an increase in the incidence of sales tax on these products. According to SRO.501(I)/2022, which supersedes SRO 489(I)/2022, the minimum value of supply of locally-produced steel goods for the purpose of payment of sales tax on an ad valorem basis has been re-fixed. 

The revised minimum value of steel bars and other long profiles is now Rs. 225,000 per metric ton, up from the previous value of Rs. 164,037 per ton. 

Meanwhile, the minimum value of steel billets has been fixed at Rs. 195,000 per metric ton, compared to the previous value of Rs. 133,813. 

The minimum value of other steel products such as steel Ingots/bala, ship plates, and other re-rollable iron and steel scrap has also been increased. 

The FBR added that if the supply value of these products is higher than the fixed value, the sales tax will be charged on the higher value.

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