ISLAMABAD AUG 04 (TNS): The FBR has notified special rules for adjustment of tax paid on imports of remeltable iron and steel scrap.
A Sales Tax General Order No. 119 of 2017 was issued to allow steel melters the adjustment of sales taxes paid at import stage.
According to the procedures, the adjustment will be allowed to those steel melting units which are paying sales tax through their electricity bills. However, steel mills operated using self-generated electricity and steel melting/re-rolling units which have opted to pay sales tax on ad valorem basis will not be entitled to this adjustment procedure.
The adjustment will be allowed only to the extent of sales tax paid at import stage on the specified scrap categories which has actually been consumed in the production of steel products. The consumption will be determined on the basis of consumption of 800 electricity units for the production of one tonne of ingots/billets allowing five per cent wastage.
In this regard, the FBR will be provided a list of entitled steel melters having single electricity meter, including composite units having both remelting and re-rolling facility, by the Pakistan Steel Melters Association.