KARACHI: The government has decided to collect federal excise duty from steel products instead of sales tax. In this regard the Federal Board of Revenue (FBR) has issued 992(I)/2019 dated September 04, 2019 to implement the decision.
The FBR issued minimum values of locally produced goods for the purpose of payment of federal excise duty in sales tax mode on ad valorem basis, at the rate defined below under the First Schedule to the Federal Excise Act, 2005:
01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.
02. Steel Billets at the value of Rs74,000 per metric ton.
03. Steel Ingots/bala at the value of Rs72,000 per metric ton.
04. Ship plates at the value of Rs72,000 per metric ton.
05. Other re-rollable iron and steel scrap at the value of Rs71,000 per metric ton.
The FBR further explained that in ccase the value of the goods specified in the Table above, as determined under sub-section (I) of Section 12 of the Federal Excise Act, 2005, is higher than the value fixed herein, the value of goods shall be such higher value.
The FBR also rescinded the SRO 697(I)/2019 dated June 29, 2019 through SRO 993(I)/2019.
Through SRO 697(I)/2019 the fbr issued the fixed value of locally produced goods for the purpose of sales tax on ad valorem basis under the Sales Tax Act, 1990.
01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.
02. Steel Billets at the value of Rs74,000 per metric ton.
03. Steel Ingots/bala at the value of Rs72,000 per metric ton.
04. Ship plates at the value of Rs72,000 per metric ton.
05. Other re-rollable iron and steel scrap at the value of Rs47,000 per metric ton.
The SRO 697(I)/2019 was imposed from July 01, 2019.
