The Federal Board of Revenue (FBR) has notified minimum values for the payment of sales tax on selected locally produced and supplied long steel products, under S.R.O. 2402(I)/2025 dated December 10, 2025.
Under the new notification, sales tax on steel bars and other long profiles will be charged on an ad valorem basis using a minimum value linked to the average national retail price. This price will be calculated as the average of retail prices prevailing in Lahore, Karachi, Peshawar, Quetta, Rawalpindi and Islamabad, as published monthly by the Pakistan Bureau of Statistics on its website. The notified minimum value for rebars has been set at PKR 105,000 (USD 375) per ton.
For upstream and semi-finished products, the FBR has set minimum taxable values as a percentage of the notified value for rebars. Billets will be taxed at 85pct of the value applicable to rebars, ingots at 80pct, and shipbreaking plates at 75pct of the same benchmark value.
The new minimum values are aimed at standardizing the tax base for long steel products and curbing under-invoicing in domestic sales.
1 USD / 280 PKR
