Electricity consumed by steel manufacturers: FBR issues new procedure for payment of additional sales tax

The Federal Board of Revenue has set out how steel producers using captive or self-generated electricity must pay and claim adjustments for additional sales tax. Business Recorder reported that Sales Tax General Order No. 31 of 2026 establishes a dedicated PSID challan and computerized payment receipt for the process.

Covered manufacturers must calculate the levy using the electricity consumed to make steel in each tax period, keep records of generation and use, and report consumption in their sales tax return. Payment is due by the fifth day of the next month, while the amount can be entered for adjustment only after deposit and CPR verification.

Revenue officials are tasked with checking electricity-use records, and defaults, underpayments or inaccurate declarations will be handled under the applicable law. The order takes effect from July 1, 2026, and also requires manufacturers to report production and supplies in their returns.