ISLAMABAD: The government of Pakistan is set to extend the regulatory duty on steel products for an additional three months, according to reliable sources. This decision comes in light of recommendations made by the Tariff Policy Board (TPB) to sustain support for the domestic steel industry.
(more…)Tag: steel products
This tag provides stories on steel products. Pakistan Revenue is committed to provide updated information on steel products.
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FBR increases steel products valuation for sales tax collection
ISLAMABAD: The Federal Board of Revenue (FBR) has revised the valuation of steel products to facilitate increased sales tax collection on the supply of this crucial commodity.
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Steel producers reject allegations of ABAD
ISLAMABAD: Pakistan Association of Large Steel Producers (PALSP) has rejected allegations leveled by builders and developers regarding price hike of steel bars.
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FBR launches online tax monitoring of steel products
ISLAMABAD: The Federal Board of Revenue (FBR) has launched online monitoring of sales and purchases by steel sector.
The FBR issued draft amendment to Sales Tax Rules, 2006 through SRO 541(I)/2022 dated April 22, 2022.
READ MORE: FBR forms committee to resolve pharmaceutical tax issues
The tax body proposed amendment to Rule 150FZ for electronic monitoring, tracking and tracing of production, import and supply of the goods.
The FBR included the steel products in the list of online. At present products of six sectors already in the list, which are: tobacco products, beverages, sugar, fertilizer, cement and petroleum products.
The FBR said that all the specified goods shall be monitored, tracked and traced in the manner provided in this Chapter and any other instructions, procedures and orders issued by the FBR.
READ MORE: FBR allocates quota for industries in erstwhile FATA/PATA
Further that the specified goods, if brought from non-tariff area as defined in the Federal Excise Act, 2005, shall be treated as imported goods for the purposes of this Chapter.
The Rule 150ZH of the this chapter stated that goods to be affixed with tax stamps, banderoles, stickers, labels, barcodes, etc.–
(1)On every package, including a tin, container or bottle, of the specified goods whether manufactured or imported shall be affixed or printed a tax stamp, banderole, sticker, label, barcode, unique identification marking, code], etc., hereinafter referred to as tax stamp, in the manner prescribed under this Chapter:
Provided that in respect of such specified goods which are exempt or meant for export tax stamps whatever the case may be shall be clearly, legibly and indelibly marked as ‘Exempt Goods’ or ‘For Export’, as the case may be.
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(2) Every tax stamp required to be affixed under these rules shall bear such security features as are approved by the Board in order to–
(a) prevent counterfeiting;
(b) enable accounting of production of the specified goods; and
(c) enable any person in the supply chain or an officer authorized by the Commissioner Inland Revenue to authenticate such tax stamp.
(3) The system for imported goods shall be installed in a designated area at the port of importation or a customs bonded warehouse, as the case may be, declared by the importer for this purpose, or any other place approved by the Project Director:
READ MORE: FBR takes measures to facilitate taxpayers in 1HFY22
Provided that the Board may allow tax stamps to be affixed on any specified goods to be imported in a production facility in the exporting country, subject to such conditions as the Board may specify.
(4) No person engaged in manufacturing, sale or purchase or handling of specified goods shall remove or tamper with the tax stamp affixed thereon until these are sold to the final consumer.
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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.
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FBR increases valuation of steel products
The Federal Board of Revenue (FBR) has implemented a significant change in the valuation of steel products, aiming to boost sales tax collection.
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FBR issues valuation for steel products
Islamabad, January 18, 2024 – The Federal Board of Revenue (FBR) has issued valuation of locally produced steel products for collection of sales tax.
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FBR prescribes minimum output of steel products for sales tax payment
ISLAMABAD: The Federal Board of Revenue (FBR) has prescribed minimum production of steel products for payment of sales tax under Thirteenth Schedule of Sales Tax Act, 1990.
According to Finance Act, 2021 an amendment has been made to Section 3 of the Sales Tax Act, 1990 in respect of goods, specified in the Thirteenth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Thirteenth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay tax shall be discharged accordingly.
In the Thirteenth Schedule following has been inserted:
Minimum production of steel products.—
The minimum production for steel products shall be determined as per criterion specified against each in the Table below:
S. No. Product Production criteria (1) (2) (3) 1. Steel billets and ingots One metric ton per 700 kwh of electricity consumed 2. Steel bars and other re-rolled long profiles of steel One metric ton per 110 kwh of electricity consumed 3. Ship plates and other re-rollable scrap 85% of the weight of the vessel imported for breaking”; and Procedure and conditions:—
(i) both actual and minimum production and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay tax shall be discharged on the basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess tax on account of excess of minimum production over actual supplies:
Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June of next year, in other cases, the tax actually paid shall not be less than the liability determined on the basis of minimum production for that year and in case of excess payment no refund shall be admissible:
Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel;
(ii) the payment of tax on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking;
(iii) the melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction.
The officers Inland Revenue having jurisdiction shall have full access to such meter;
(iv) the minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.
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New values of steel products fixed for sales tax payment
ISLAMABAD: Federal Board of Revenue (FBR) has notified new valuations for steel products for the purpose of collecting sales tax from July 01, 2019.
The FBR on Saturday issued SRO 697(l)/2019 to fix the following values of locally produced goods specified in the Table below, for the purpose of payment of sales tax on ad valorem basis, at the rate as applicable to specified in sub-section (1) of section 3 of the Sales Tax Act, 1990.
1. Steel bars: Rs83,000 per metric ton
2. Steel Billets: Rs74,000 per metric ton
3. Steel Ingots/bala: Rs72,000 per metric ton
4. Ship plates: Rs72,000 per metric ton
5. Other re-rollable iron & steel scrap: Rs47,000 per metric tons
In case the value of supply of the goods specified in this notification is higher than the values fixed herein, the value of goods shall be the value at which the supply is made.
The FBR said that the SRO would take effect on and from the 1st day of July, 2019.