S.R.O. 1245(1)/2026.Islamabad, the 31 st July, 2026

NOTIFICATION Sales Tax S.R.O. 1245(1)/2026.— In exercise of the powers conferred by the provisos to subsection (2) of section 6 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to prescribe the following procedure for the purposes of categorization of nature of their business activity, rates and manners for collection and payment of sales tax on the basis of per unit of electricity consumed by the steel melters, re-rollers and composite units of steel melting and re-rolling operating on electric power or any other source of energy including those operated by sugar mills or other persons using self-generated electricity from bagasse or other means and regardless of type of electricity connection including captive power producers, namely: steel melters and composite using remeltable iron and steel scrap falling under PCT heading 7204.3000, 7204.4100 and 7204.4990 and waste and scrap of compressors falling under PCT heading 7204.4940 shall pay sales tax per unit of electricity consumed for the production of steel billets, ingots and mild steel in addition to sales tax chargeable under sub-section (l) of section 3 of the Act as per following, namely: the manufacturers consuming local scrap shall pay sales tax at the rate of rupees thirty per electricity unit consumed; the manufacturers consuming imported scrap over seventy percent in aggerate in the last twelve months shall pay sales tax at the rate of rupees five per electricity unit consumed; the manufacturers consuming scrap as supplied by EFS licensee over seventy percent in aggregate in the last twelve months (from 01.06.2026) shall pay sales tax at the rate of rupees'five per electricity unit consumed; and steel manufacturers operating under captive power or self-generation of electricity etc shall pay rupees thirty-five per electricity unit consumed: Provided that per unit rate of sales tax on electricity consumed shall be rupees five for those steel melters and composite units only who are integrated with the Board's Computerized System for real time reporting of sales and their consumption or usage of imported remeltable iron and…