New sales tax orders support voluntary corporatization, correct registrations, and identify 99 eligible steel manufacturers.
ISLAMABAD: The Federal Board of Revenue (FBR) has issued three Sales Tax General Orders (STGOs) to address implementation challenges in Pakistan’s iron and steel sector by facilitating voluntary corporatization, correcting registration records, and identifying manufacturers eligible for a special sales tax regime linked to electricity consumption.
The latest notifications — STGO Nos. 12, 13, and 14 of 2026 — were issued between July 31 and August 4, 2026, as part of the implementation of reforms introduced through STGO No. 10/2026 and SRO 1245(I)/2026.
Eight companies added under corporatization scheme
Under STGO No. 12, the FBR expanded the list of manufacturers qualifying for the Removal of Difficulty for Voluntary Corporatization of Iron and Steel Manufacturers by adding eight newly incorporated companies after verifying compliance with the prescribed standard operating procedures (SOPs).
The newly approved companies include Faizan Steel (Private) Limited, Aziz Re-Rolling Industries (Private) Limited, Rasheed Steel (Pvt) Limited, Pak Iron & Steel Casting (Private) Limited, A-One Re-Rolling, Union Steel Private Limited, and Ittehad Iron & Steel Industries (Pvt) Limited.
The notification also provides details of each company’s new and previous tax registration numbers, manufacturing facilities, and electricity and gas connections for verification purposes.
FBR issues corrigendum
The tax authority subsequently issued STGO No. 13 to correct the name of one of the companies listed in the earlier notification.
According to the corrigendum, the company appearing at serial number five should be read as A-One Re-Rolling Steel Mills (Pvt) Ltd, while all other registration, location and identification details remain unchanged.
Special sales tax regime for 99 manufacturers
The most significant measure came through STGO No. 14, under which the FBR identified 99 registered iron and steel manufacturers eligible for a special sales tax mechanism.
Under the scheme, manufacturers meeting the prescribed import and scrap purchase thresholds and integrated with the FBR’s computerized monitoring system will pay sales tax at the rate of Rs5 per unit of electricity consumed, with the tax collected through electricity bills issued by their respective distribution companies (DISCOs).
Major steel companies included
The notified list covers a wide range of steel manufacturers operating across Karachi, Lahore, Faisalabad, Islamabad, Hub (Balochistan), Khyber Pakhtunkhwa, and other industrial hubs.
Major companies included in the list are Amreli Steels Ltd, Fazal Steel (Private) Limited, Mughal Iron & Steel Industries Ltd, Ittefaq Iron Industries Ltd, Naveena Steel Mills (Private) Limited, Union Steel Industries, Faizan Steel, Pak Iron & Steel Casting, Karachi Steel Re-Rolling Mills, and A-One Re-Rolling Steel Mills, along with dozens of medium-sized manufacturers.
The FBR clarified that the notified list is dynamic and may be revised periodically based on recommendations from the Commissioner Inland Revenue or verification of eligibility. Manufacturers may be added to or removed from the list to ensure that only compliant businesses continue to benefit from the special sales tax regime.