ISLAMABAD: While simply ignoring the appeal of the constructon industry, the Federal .Board of
Revenue ( FBR) has revised upward deemed value of steel by Rs 13000 a ton to charge additional tax by Rs 2200 per ton from the industry.
The FBR issued a formal notification to this effect on November 15, 2021.
The FBR notification, copy available with NEWSMAN, said it was pleased to amend the SRO 1465 (1) 2021dated Nov 15 to increase deemed value on all steel products and its raw material to charge additional tax from the industry.
As per FBR notification deemed value of steel products has been increased from Rs 140,000 to Rs 153,000 per ton, showing an increase of Rs 13000 per ton. Its immediate affect was an increase in the price of steel by Rs 2200 a ton. This is second increase in deemed value on steel in 2021. The FBR had revised deemed value of steel in August this year.
Deemed value is fixed by FBR to charge sales tax and other taxes on steel products. As international market moves up, so the government increases its portion of tax on steel through enhanced deemed value of steel products. The government approach to collect maximum tax from steel industry is hurting construction industry of Pakistan. Steel, a major component of construction industry, has become costlier in recent months. The price of steel has doubled in the last one year. The price of one ton of steel has gone up from Rs 100000 in November in 2020 to Rs 193000 in November 2021. This unprecedented increase in the steel price is slowing down pace of constru tion in the country. A few days ago, the construction industry had pleaded the prime minister to chech rise in steel prices.
