Key points

  • The Federal Board of Revenue raised the minimum value of supply for specified remeltable iron and steel scrap to 60 percent.
  • According to Business Recorder, the threshold was previously set at 55 percent under an earlier notification issued in October 2026.
  • The adjusted valuation mechanism applies directly to supplies made by authorized manufacturer-cum-exporters of recycled copper to registered steel melters.

Islamabad's tax authority has adjusted the regulatory framework governing the steel sector by raising the valuation benchmark for specific scrap materials. According to Business Recorder, the Federal Board of Revenue issued S.R.O. 2086(I)/2026 to amend its previous directive and increase the minimum supply value percentage.

Key Details

Business Recorder reported that the latest amendment replaces the figure '55' with '60' against Serial No. 5 of the relevant table, while also introducing a consequential adjustment to the description in that entry. This regulatory change follows an earlier notification, S.R.O. 1829(I)/2026, which had originally established the 55 percent benchmark under S.R.O. 2402(I)/2025.

The revised valuation specifically targets re-meltable iron and steel scrap falling under PCT heading 72.04. The affected supplies are those transferred directly by an Export Facilitation Scheme-authorised manufacturer-cum-exporter of recycled copper to a registered steel melter.

Context and Impact

Under the established mechanism reported by Business Recorder, the minimum value of supply is tied directly to the benchmark value of steel bars listed at Serial No. 1 of the original notification. This baseline is determined using the average national retail price of steel bars published by the Pakistan Bureau of Statistics, minus Rs1,500 per metric ton.

Summary and What Next

The latest five-percentage-point increase alters the fiscal calculations for specified scrap transactions within the domestic steel industry. Further procedural instructions or subsequent adjustments from the tax administration have not been detailed in the available reports.