ISLAMABAD – The Federal Board of Revenue (FBR) has imposed a sales tax of Rs5 per unit on electricity consumption by 100 selected units in the iron and steel sector, including manufacturers, melters, re-rollers and composite units. The FBR issued a new Sales Tax General Order for the steel industry, under which the relevant distribution companies (DISCOs) will collect the additional tax through electricity bills at the rate of Rs5 per unit. The new tax will apply to selected melters, re-rollers and composite units that fulfil specific conditions related to the import of scrap. The move is expected to increase production costs for steel companies, potentially leading to higher prices of steel products in the market. According to the FBR, the measure has been introduced to improve the effectiveness of the taxation system in the steel sector.