FBR Adds Steel HS Codes to Input Tax Restriction List

• Pakistan FBR issued Sales Tax General Order No. 26 of 2026 as an addendum to STGO 12 of 2022.
• It further restricts input tax adjustment for steel melters/re-rollers on additional HS codes covering semi-finished and certain finished/semi-finished iron and steel products.
• The added restricted items include HS codes 7207 to 7229, such as semi-finished iron/non-alloy steel, flat-rolled steel products, bars and rods, angles/shapes/sections, wire, and certain stainless/alloy steel products.
• The order says these goods are not related to steel melters and therefore are outside allowable input tax credit under section 8 of the Sales Tax Act.
• The order applies with immediate effect.

Source: download1.fbr.gov.pk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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