ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) has imposed a Rs5 sales tax per unit of electricity on selected companies in the iron and steel sector, a move that is expected to increase the cost of steel products.
According to a new Sales Tax General Order (STGO) issued by the FBR, the tax applies to 100 manufacturers, melters, re-rollers and composite units operating in the iron and steel industry.
Under the new directive, the relevant electricity distribution companies (DISCOs) will collect the Rs5 per unit sales tax through electricity bills issued to the affected companies.
The tax will apply to melters, re-rollers and composite units, as well as companies that meet the specified conditions for importing steel scrap.
The FBR Pakistan said the measure is aimed at improving tax compliance and strengthening the tax collection system in the steel sector.
The new order has been implemented under a notification issued on August 4, 2026, and is now effective for the designated companies.
