The Federal Board of Revenue (FBR) has notified a list of 99 registered iron and steel manufacturers that will be subject to sales tax of Rs5 per unit of electricity consumed, with the tax to be collected through electricity bills issued by the respective power distribution companies (Discos).

According to a notification issued by the FBR, the measure applies to registered melters, re-rollers and composite units whose imports of steel scrap under specified HS codes including purchases made under the Export Facilitation Scheme (EFS) and from local importers accounted for more than 70% of their total scrap purchases during the preceding 12 months.

The FBR said the notified manufacturers have fully integrated their operations with the authority's computerized monitoring system, making them eligible for the electricity consumption-based sales tax mechanism.

Under the revised framework, the Rs5 per unit sales tax will be charged directly through electricity bills issued by the relevant distribution companies, simplifying tax collection and strengthening compliance within the iron and steel industry.

The tax authority also stated that the list of eligible manufacturers may be revised from time to time, either by the FBR or on the recommendation of the concerned Commissioner Inland Revenue (CIR). The Board added that field formations would continue to assess the eligibility of manufacturers for inclusion or exclusion based on the prescribed criteria.

The FBR further advised manufacturers facing operational difficulties or eligibility concerns to approach the relevant Commissioner Inland Revenue for review and appropriate consideration.