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Home Breaking News

FBR adds five steel units to Rs5 electricity sales tax regime

byCT Report
07/09/2026
in Breaking News, Islamabad, Latest News, Slider News
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ISLAMABAD: The Federal Board of Revenue (FBR) has amended its Sales Tax General Order (STGO) 16 of 2026 to add five more iron and steel manufacturers to the list of taxpayers subject to sales tax at Rs5 per unit of electricity consumed.

The FBR issued Sales Tax General Order No. 22 of 2026 – IR Operations, amending STGO 16/2026 dated August 6, 2026.

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The order was issued under the third proviso to sub-section (2) of Section 6 of the Sales Tax Act, 1990, read with clause (g) of SRO 1245(I)/2026 dated July 31, 2026.

Five steel manufacturers added to FBR list

Under the amendment, the following five steel manufacturers have been added to the list:

• Rasheed Steel — MN 3348026

• Batala Steel Industries — MN 9184872

• Royal Steel — MN 2538271

• Platinum Steel Mill (Private) Limited — MN 5593212

• KBS Steel Furnace — MN 4288071

The order states that the relevant electricity reference numbers and distribution companies (DISCOs) will correspond to the respective electricity connections of each taxpayer.

FBR sets eligibility criteria for steel manufacturers

According to the FBR, the eligibility of the newly included taxpayers was determined under the criteria prescribed in SRO 1245(I)/2026.

The criteria include the consumption of scrap and electricity units for the production of steel products, as well as the import of scrap under specified Harmonised System (HS) codes.

The FBR said the list of eligible taxpayers may be revised from time to time either by the Board or on recommendations from the concerned Commissioner Inland Revenue (CIR).

The Board and relevant field formations may also independently examine the eligibility of any registered manufacturer for inclusion in or exclusion from the list based on the prescribed criteria.

Taxpayers can approach Commissioner Inland Revenue

The FBR further stated that taxpayers facing hardship may approach the concerned Commissioner Inland Revenue for appropriate consideration.

The amended STGO has immediate effect and applies to all electricity connections held by the five newly listed taxpayers.

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