FBR launches stocktaking drive in steel sector to check tax evasion

FBR has launched a stocktaking drive in the steel sector to verify the reports that re-rollers/melting furnaces are involved in tax evasion through underreporting of production. The FBR launched the scrutiny process on the complaint of steel melters claiming that unregistered business units are evading taxes on electricity consumption. FBR has issued an official note to all the tax offices regarding input adjustment in the steel sector especially after the changes brought in the sales tax laws through the Finance Act 2019. The FBR has directed tax offices to provide information of inputs utilized in production of steel and supply on month-wise basis from 1st Jul’19.