The Federal Board of Revenue (FBR) has announced a new policy directive that mandates the quarterly determination of minimum values for steel products for the purpose of sales tax assessment.
This decision, informed by recommendations from field offices, aims to align tax collection more closely with current market conditions.
Instructions were dispatched to both Large Taxpayer Offices (LTOs) and Regional Tax Offices (RTOs) following a conclusive meeting between the FBR and the Pakistan Association of Large Steel Producers (PALSP).
The meeting underscored the necessity of adjusting the minimum value of steel products on a quarterly basis, based on comprehensive market analysis and the input of respective field offices.
To facilitate these adjustments, the FBR has requested its field formations to conduct regular market surveys and provide updated market prices along with recommendations.
These findings are to be submitted on a monthly basis to aid in the quarterly revision of steel product values, as stipulated in the Board’s recent directive.
Further instructions from the FBR highlighted the importance of designating a “focal person” within each field formation. This individual will be responsible for coordinating with the FBR on determining the minimum values of steel products and ensuring timely communication of findings.
Pakistan Association of Large Steel Producers acknowledges the policy as a significant step towards ensuring fair sales tax contributions from the steel industry and enhancing government revenue through periodic value adjustments.
