The Federal Board of Revenue (FBR) has notified 31 registered iron and steel manufacturers, including melters, re-rollers, and composite units, that will be charged sales tax at the rate of Rs5 per unit of electricity consumed under Sales Tax General Order (STGO) No. 16 of 2026, issued on August 6, 2026. The special tax regime will apply retrospectively from July 1, 2026.

According to the order, the notified manufacturers were selected because their scrap imports under HS Codes 7204.3000, 7204.4100, 7204.4990, and 7204.4940, including direct purchases from Export Facilitation Scheme (EFS) importers, exceeded 70% of their total scrap purchases during the preceding twelve months. Their manufacturing operations are also integrated with the FBR's computerized system.

The sales tax will be collected through electricity bills issued by the respective Distribution Companies (DISCOs).

The 31 notified manufacturers are:

1. A.F. Steel Re-Rolling Mills
2. AFCO Steel Industries
3. AK Smelters and Re-Roller (Private) Limited
4. AK Steel and Re-Rolling Mills
5. Amreli Steels Limited
6. Aziz Industries
7. Eastern Steel Industries
8. Faizan Steel
9. Farid Steel Casting Industries
10. Frontier Foundry (Private) Limited
11. Hattar Steel Re-Rolling Mills
12. Hunza Steel (Private) Limited
13. Ikram Steel Industries
14. Indus Steel Mills Corporation (Private) Limited
15. Iqbal Induction
16. Ishtiaq Steel Industry
17. Ittehad Steel Industries
18. Kamran Steel Re-Rolling Mills (Private) Limited
19. Karachi Steel Re-Rolling Mills
20. Islamabad Steel Furnace & Re-Rolling Mills
21. Madina Steel Industry
22. Mughal Iron & Steel Industries Limited
23. Naveena Steel Mills (Private) Limited
24. New Shalimar Steel Industries (Private) Limited
25. Nomee Steel (Private) Limited
26. Pak Iron & Steel Casting
27. Pak Steel
28. Pakistan Steel Re-Rolling Mills
29. Prime Steel Re-Rolling Mills
30. Sangam Steel Mills
31. Zahid Enterprises Steel Re-Rolling Mills

The FBR said the eligibility of these manufacturers was determined under the criteria prescribed in SRO 1245(I)/2026, covering scrap consumption, electricity usage in steel production, and imports under the specified HS codes.

The Board added that the notified list may be revised from time to time by the FBR or on the recommendation of the Commissioner Inland Revenue (CIR). Field formations have also been authorized to independently examine whether any manufacturer qualifies for inclusion in or exclusion from the list.

Manufacturers facing any hardship arising from the order may approach the concerned Commissioner Inland Revenue for appropriate consideration.

The latest notification has been issued under the Sales Tax Act, 1990, read with SRO 1245(I)/2026 dated July 31, 2026, and supersedes STGO No. 14 of 2026 issued on August 4, 2026.