Wednesday, February 8, 2017

Zero-rated sales tax facility suspended

KARACHI: The Federal Board of Revenue (FBR) has suspended the facility of zero-rated sales tax to at least nine textile units, which was granted on the consumption of electricity.
In a Sales Tax General Order (STGO) issued on Monday, the FBR withdrew the facility on the charges of misuse and directed the utility company to charge normal rates of sales tax at 17 percent from these textile units.
All the units found in misusing the facility are registered with the Regional Tax Office (RTO), Faisalabad.
The FBR directed the RTO Faisalabad to submit a report in respect of action taken or recovery made for the misuse of the facility by the units.
The tax authorities have launched monitoring of the zero-rated facility granted through consumption of electricity and gas to the textile sector.
The facility has been granted in order to reduce the cost of manufacturing and enhance exports.

Earlier on January 19, 2017, the FBR had terminated the facility on electricity consumption of eight textile units registered with the RTO Karachi.

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