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FBR suspends zero rating on electricity to textile unit

FBR suspends zero rating on electricity to textile unit

ISLAMABAD: Federal Board of Revenue (FBR) has suspended sales tax zero rating allowed to a textile unit on consumption of electricity.

The FBR issued Sales Tax General Order (STGO) No. 51 of 2019 and suspended sales tax zero rating under SRO 1125(I)/2011 dated December 31, 2011 of Habib Fabric Private Limited.

The zero rating of the taxpayers has been suspended on the recommendation of Regional Tax Office (RTO) Faisalabad.

The FBR directed Chief Commissioner RTO Faisalabad to coordinate with power supply company to implement the normal tax rate. The RTO has also been asked to submit report in respect of action taken/recovery made for misuse of the facility.

The FBR also asked Faisalabad Electric Supply Company (FESCO) to start charging sales tax on the supply of electricity in respect of the said consumer with immediate effect (April 10, 2019).