FBR raises steel valuation amid high commodity prices

FBR raises steel valuation amid high commodity prices

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday increased the valuation of steel products considering rising commodity prices in the international markets.

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 489(I)/2022 on April 05, 2022.

Previously, the FBR issued SRO 1465(I)/2021 dated November 15, 2021 in this regard. 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 Rs164,037 per metric ton from Rs153,000 per metric ton on the supply of steel bars and other long profiles.

READ MORE: FBR increases valuation of steel products

The value has been increased to Rs133,813 metric tons from Rs131,000 per metric ton on supply of steel billets.

However, the value of steel ingots has been kept unchanged at Rs126,000 per metric ton for the collection of sales tax.

The value of ship plates has been increased to Rs129,584 per metric tons from Rs126,000 per metric ton for collection of sales tax.

The value of other re-rollable iron and steel scrap has been increased to Rs125,688 per ton from Rs119,000 per metric ton 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.