Overview
- The Federal Board of Revenue has published a list of 99 named melters, re-rollers and composite steel units that will be charged Rs5 for every unit of electricity via their monthly DISCO bills.
- The levy applies only to manufacturers whose imports or direct purchases of scrap under four specific HS codes exceed 70 percent of their total scrap purchases and whose operations are integrated with FBR’s computer system.
- DISCOs have been directed to collect the charge on electricity bills under a Sales Tax General Order that cites the Sales Tax Act and SRO 1245(I)/2026 as the legal basis for the measure.
- FBR says the published list can be revised and that field formations or the Commissioner Inland Revenue may independently examine cases for inclusion, exclusion or hardship relief.
- Authorities frame the move as a way to document the iron and steel sector and curb leakages tied to scrap imports, and it could raise operating costs for affected mills while creating a direct billing point for tax enforcement.