FBR Forces More Steel Makers to Pay Rs. 5/Unit Electricity Tax

The Federal Board of Revenue (FBR) has expanded the list of iron and steel manufacturers subject to a sales tax of Rs. 5 per unit of electricity consumed through their power bills.

FBR issued Sales Tax General Order (STGO) No. 22 of 2026, amending STGO 16 of 2026, and added four registered manufacturers from the iron and steel sector.

The tax applies to melters, re-rollers and composite units that meet the prescribed criteria for scrap consumption, electricity use and imports of scrap under specified HS codes.

FBR said the listed manufacturers imported more than 70 percent of their total scrap purchases under the relevant HS codes directly during the previous 12 months, including purchases through the Export Facilitation Scheme and from importers. Their operations are also integrated with the FBR’s computerized system.

The Rs. 5-per-unit sales tax will apply to all electricity connections of the listed manufacturers with immediate effect.

FBR said the list may be revised from time to time. Registered manufacturers may also be added or removed after examination by the Board or on the recommendation of the concerned Commissioner Inland Revenue.

Get the latest business news, market insights, and economic updates wherever you prefer.