ISLAMABAD: The Federal Board of Revenue (FBR) on Monday increased the valuation of steel products in order to increase the sales tax collection.
The FBR has fixed the valuation of steel products for the collection of sales tax, instead of the prevailing rates in the open market. The fixed valuation is the minimum price on which sales tax is to be collected on the supply of steel products.
The FBR issued SRO 1465(I)/2021 on November 15, 2021.
Previously, the FBR issued SRO 985(I)/2021 dated August 04, 2021, to introduce the valuation for collection of sales tax at 17 per cent on supply of steel products.
The FBR enhanced the valuation to Rs153,000 per metric ton from Rs140,000 per matric ton on the supply of steel bars and other long profiles. The value has been increased to Rs131,000 per metric ton from Rs125,000 per metric ton on supply of steel billets. Similarly, the value of steel ingots has been increased to Rs126,000 per metric ton from Rs120,000 / MT for the collection of sales tax. The value of ship plates has been increased to Rs126,000 per metric ton from Rs120,000 per metric tons for collection of sales tax. The value of other re-rollable iron and steel scrap has been increased to Rs119,000 per metric ton from Rs118,000/MT for the purpose of sales tax.
The FBR further said that in case notified value of supply of the goods is higher than the value fixed, the value of goods shall be the value at which the supply is made.