The Federal Board of Revenue is planning to impose sales tax on the import of iron and steel scrap.
Sources said that that the FBR has proposed imposition of 5%sales tax on the value of imported iron and steel scrap or PKR 1,600 sales tax per tonne which ever is higher.
The sales tax would be chargeable on the basis of value of the imported iron and steel scrap.In case the government notifies the decision it would be a new levy as there was no sales tax on the import of iron and steel scrap.The sales tax would be adjustable against power bills being paid by steel melting and steel re rolling units.
The FBR has also decided to reduce sales tax on the steel melting and steel re rolling units being collected on the basis of per unit of electricity consumed by the steel manufactures.The sales tax is expected to be brought down from PKR 7 to PKR 4 per unit of electricity.
