Karachi, December 10, 2025 – The Federal Board of Revenue (FBR) has announced a revised valuation mechanism for steel products to streamline and enhance sales tax collection across the steel sector. The updated valuation method was formally notified through SRO 2402(I)/2025, issued on Wednesday.
Under the amended procedure, the FBR will now determine the minimum value of steel bars and other long profiles based on the average national retail price. This average will be calculated using retail prices of steel bars published monthly by the Pakistan Bureau of Statistics (PBS) for major cities, including Karachi, Lahore, Rawalpindi, Islamabad, Peshawar, and Quetta. Once the average price is determined, Rs1,500 per metric ton will be deducted from the listed retail price to arrive at the taxable value.
The FBR also revised valuation percentages for various steel products relative to the price of steel bars:
• Steel billets: valued at 85% of steel bar prices
• Steel ingots/bilas: valued at 80% of steel bar prices
• Ship plates: valued at 75% of steel bar prices
These new benchmarks replace the earlier fixed minimum values set under SRO 1636(I)/2024, issued on October 17, 2024. The previous valuation rates used for sales tax assessment were:
• Steel bars & long profiles: Rs205,000 per ton
• Steel billets: Rs175,000 per ton
• Steel ingots/bilas: Rs160,000 per ton
• Ship plates: Rs154,000 per ton
The FBR stated that the revised method aims to bring greater transparency, ensure consistency with market prices, and minimize revenue leakages. By linking valuations to monthly PBS data, the tax authority expects improved compliance and a more accurate reflection of real-time pricing trends within the steel industry.