ISLAMABAD - The Federal Board of Revenue (FBR) on Tuesday notified fixed GST (general sales tax) of Rs 164,037 per metric tonne on steel bars and other long profiles.
The FBR has increased the minimum prices of steel products through amendments in SRO-985 issued in November 2021 after increased prices of steel products in domestic and international markets. The FBR has issued a notification yesterday to revise the GST on steel products. As per its notification, the FBR has imposed GST of Rs133,8137/metric tonne on steel billets, Rs126,000/metric ton on steel ingots/bala, Rs129,584/metric tonne on ship plates, and Rs125,688/metric tonne on other re-rollable iron, and steel scrap.
In November last year, the prices of steel bars had been fixed at Rs153,000 per metric tonne, billets at Rs131,000 per MT, ingots/bala and ship plates at Rs126,000 per MT, and scrap at Rs119,000 per MT. The government had abolished Special Procedures for the steel sector through Finance Bill 2019-20 and slapped the standard GST rate of 17 percent. “In case the value at which supply of above products is made is higher than the value fixed herein, the sales tax shall be charged on such higher value,” the FBR said in a notification.
FBR notifies fixed GST of Rs164,037 per metric tonne on steel bars and other long profiles
Officials informed that an upward revision was essential in the wake of the recent surge in local and international prices of steel products and to prevent a possible loss of revenue. Earlier, the steel industry too had demanded a revision in the minimum prices stating that prices were on an increasing trend. Representatives of the Pakistan Association of Large Steel Producers had recently informed the Senate Standing Committee on Industries and Production that about 400 companies are currently making steel in Pakistan. And most of the steel in Pakistan is made from imported scrap. As the price of scrap increases in the global market, so does the cost of production, which in turn causes prices to rise. Secretary, Ministry of Industries and Production informed the committee that the services of a private firm would be sought for determining the exact production cost of steel and other commodities in Pakistan so that the prices could be fixed accurately. Senator Muhammad Abdul Qadir asked as to why the price of steel is rising in Pakistan. And if we import the same steel, what effect will it have on prices? Officials of the Engineering Development Board said that work is underway in this regard and matters will be sorted out in collaboration with the representatives of the industries concerned.
The FBR has increased the minimum prices of steel products through amendments in SRO-985 issued in November 2021 after increased prices of steel products in domestic and international markets. The FBR has issued a notification yesterday to revise the GST on steel products. As per its notification, the FBR has imposed GST of Rs133,8137/metric tonne on steel billets, Rs126,000/metric ton on steel ingots/bala, Rs129,584/metric tonne on ship plates, and Rs125,688/metric tonne on other re-rollable iron, and steel scrap.
In November last year, the prices of steel bars had been fixed at Rs153,000 per metric tonne, billets at Rs131,000 per MT, ingots/bala and ship plates at Rs126,000 per MT, and scrap at Rs119,000 per MT. The government had abolished Special Procedures for the steel sector through Finance Bill 2019-20 and slapped the standard GST rate of 17 percent. “In case the value at which supply of above products is made is higher than the value fixed herein, the sales tax shall be charged on such higher value,” the FBR said in a notification.
FBR notifies fixed GST of Rs164,037 per metric tonne on steel bars and other long profiles
Officials informed that an upward revision was essential in the wake of the recent surge in local and international prices of steel products and to prevent a possible loss of revenue. Earlier, the steel industry too had demanded a revision in the minimum prices stating that prices were on an increasing trend. Representatives of the Pakistan Association of Large Steel Producers had recently informed the Senate Standing Committee on Industries and Production that about 400 companies are currently making steel in Pakistan. And most of the steel in Pakistan is made from imported scrap. As the price of scrap increases in the global market, so does the cost of production, which in turn causes prices to rise. Secretary, Ministry of Industries and Production informed the committee that the services of a private firm would be sought for determining the exact production cost of steel and other commodities in Pakistan so that the prices could be fixed accurately. Senator Muhammad Abdul Qadir asked as to why the price of steel is rising in Pakistan. And if we import the same steel, what effect will it have on prices? Officials of the Engineering Development Board said that work is underway in this regard and matters will be sorted out in collaboration with the representatives of the industries concerned.
