Business Recorder reported that the Federal Board of Revenue has decided to collect adjustable sales tax at 5%on the value of imported goods or INR 1600 per metric tonne,whichever is higher,on the import of re meltable iron and steel scrap.
The FBR has amended Sales Tax Special Procedure Rules,2007 through a SRO 1486(I)/2012 issued on December 26th Wednesday in this regard.
The notification said that the FBR has reduced sales tax on the steel melting and steel re rolling units,previously being collected on the basis of per unit electricity consumed by the steel manufactures.The sales tax has been reduced from PKR 7 per unit to PKR 4 per unit of electricity.
The cost of doing business is very high for the steel sector.The power and gas load shedding has also adversely affected the manufacturing of the steel sector.As electricity is the major input of steel sector,its shortage has created serious problems for the entire industry.Therefore,the Board has reduced sales tax on the steel melting and steel re-rolling units collected on the basis of per unit of electricity.
Following is the text of the notification issued on December 26th Wednesday:In exercise of the powers conferred by sub-section(1)of section 71 of the Sales Tax Act,1990,read with clauses(9)and(46)of section 2,sections 3 and 4,sub-section(2)of section 6,section 7,section 7A,clause(b)of sub-section(1)of section 8,clause(a)of sub-section(2)of section 13,sub-sections(2A)and(3)of section 22,section 23 and section 60 thereof,the Federal Government is pleased to direct that the following further amendments shall be made in the Sales Tax Special Procedure Rules,2007.
