ISLAMABAD: The federal government has proposed to enhance fixed rate basis on steel sector, ship breakers and steel melters.

Sales tax on steel sector, including ship breaking sector in the budget for FY 2016-17.

The levy is presently collected on fixed rate  basis. Sales tax from steel melters and rerollers is collected on the basis of

electricity consumption whereas ship-breakers are paying sales tax on the basis of LDT ( Lowest Displacement)  of ships imported for breaking. These rates are proposed to be revised

upwards and enforced through amendment in the Sales Tax Special Procedure Rules, 2007, effective from 01.07.2016, says the budgetary proposal announced by Federal Finance Minister.