ISLAMABAD: The Federal Board of Revenue (FBR) has brought three additional steel manufacturing units under the Rs5 per unit sales tax regime on electricity consumption, expanding the list of manufacturers covered by the levy.
The decision applies to eligible steel manufacturers, melters, re-rollers and composite units under an amended Sales Tax General Order (STGO) No. 16 of 2026, originally issued on August 6.
According to the revised order, the newly included businesses are KB Enterprises, GMB Steel Furnace and Rajput Steel Industry.
The amendment extends the existing electricity-based sales tax arrangement to these manufacturers rather than introducing a new tax rate for the entire steel industry.
The three companies have been identified through their National Tax Numbers (NTNs), with KB Enterprises registered under 8279122, GMB Steel Furnace under 4220416 and Rajput Steel Industry under 0962986.
How FBR determines eligibility for steel units
The FBR said the eligibility of manufacturers is assessed under criteria prescribed in SRO 1245(I)/2026, issued on July 31, 2026.
The assessment takes into account electricity consumption and scrap usage in steel production, along with imports of scrap falling under specified Harmonised System (HS) codes.
These criteria are used to determine which registered manufacturers qualify for inclusion in the electricity-based sales tax arrangement.
The latest amendment brings the three identified manufacturers within the scope of the existing order, making their electricity consumption subject to sales tax at the prescribed rate of Rs5 per unit.
FBR retains power to revise manufacturers’ list
The tax authority has clarified that the list of manufacturers covered by the arrangement is not permanent and may be revised periodically.
The FBR or the relevant Commissioner Inland Revenue can review the eligibility of any registered manufacturer and recommend its inclusion or removal from the list.
Such reviews will be based on the prescribed eligibility conditions, allowing the tax authority to update the list as required.
The latest revision follows the earlier notification governing the application of sales tax on electricity consumed by qualifying steel units.