FBR notifies 31 steel makers for Rs5/unit electricity sales tax

August 07, 2026 (MLN): The Federal Board of Revenue (FBR) has notified 31 registered iron and steel manufacturers melters, re-rollers and composite units who will now be charged sales tax at the rate of Rs5 per unit of electricity consumed, under Sales Tax General Order (STGO) No. 16 of 2026 issued on August 6.

The manufacturers named were identified on the basis that their scrap imports under HS codes 7204.3000, 7204.4100, 7204.4990 and 7204.4940 including direct purchases from Export Facilitation Scheme (EFS) importers exceeded 70% of their total scrap purchases under these codes over the preceding twelve months, and that their operations are integrated with FBR's computerized system.

Under the order, the special Rs5 per unit rate will be charged through electricity bills issued by the respective Distribution Companies (DISCOs), applicable retroactively from July 1, 2026.

The 31 companies named in the list include Amreli Steels Ltd, Mughal Iron & Steel Industries Ltd, Naveena Steel Mills (Private) Limited, Ittehad Steel Industries, Pakistan Steel Re-Rolling Mills, and Sangam Steel Mills, among others.

The FBR said the eligibility of the listed taxpayers was determined against the criteria set out in SRO 1245(I)/2026 covering scrap consumption, electricity units used in steel production, and scrap imports under the specified HS codes.

The list may be revised from time to time by the Board or on the recommendation of the Commissioner Inland Revenue (CIR), and field formations may independently examine any manufacturer's eligibility for inclusion or exclusion.

Any hardship arising from the order may be brought to the notice of the concerned Commissioner Inland Revenue.

The order, 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, supersedes STGO 14 of 2026 dated August 4, 2026.

Full list of notified manufacturers

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