FBR expands list of steel manufacturers subject to Rs5 per unit sales tax on electricity

The FBR has added four more iron and steel manufacturers to the group that must pay Rs5 per unit of power as sales tax, Profit reported. The charge will reach these units through the bills their DISCOs issue. Sales Tax General Order No. 22 of 2026, issued on Monday, amends the earlier STGO No. 16 of 2026 to bring the new firms in.

The four newcomers are melting operations, re-rolling mills and composite plants that fit the FBR's prescribed standards. To qualify, more than 70% of a manufacturer's scrap purchases over the preceding 12 months must have come through direct imports under listed HS codes, including Export Facilitation Scheme purchases. Each unit must also be linked into the FBR's computerised system, and the order applies right away to every electricity connection they hold.

The list can be altered over time, either by the Board or on a recommendation from a Commissioner Inland Revenue, and both the Board and field offices may review whether a manufacturer qualifies for inclusion or removal. Firms that face hardship from the order can raise the issue with the relevant Commissioner Inland Revenue.