New Manufacturer Exporters Will Get Concessions on Electricity, RLNG, and Gas Tariffs

The new manufacturers-cum-exporters of textile, leather, carpets, sports, and surgical goods can enjoy concessionary tariff of electricity, RLNG, and gas from January 1, 2021, after fulfilment of certain conditions of the Federal Board of Revenue (FBR).

In this connection, Export-oriented Sector Registration Cell (ESRC) of FBR would deal with the new manufacturers-cum-exporters, who intended to avail the concessionary tariff of electricity, RLNG and natural gas.

The FBR has issued a procedure for registration of new entrants/manufacturers in export-oriented sectors to qualify for the concessionary regime of electricity, RLNG and gas tariff from January 1, 2021.

The details released by the FBR revealed that the Economic Coordination Committee (ECC) of the Cabinet vide its decision in case No.ECC-434/59/2020 dated 02.12.2020, directed the Federal Board of Revenue, Ministry of Commerce, and other stakeholders to devise a standard operating procedure (SOP) for enrollment of Registered Persons under the export-oriented sectors (erstwhile zero-rated sectors) to qualify concessionary regime of electricity, RLNG and Gas tariff.

Accordingly, a meeting was held in FBR on Dec 22, 2020, and as a result of thorough deliberations amongst all stakeholders, the requisite SOP has been agreed upon and being rolled onto.

The main features of the SOP are as under: –

For new registration of manufacturers for concessionary tariff rates, applicants may apply through respective representative Association, as listed. The Association concerned, after verifying the particulars on the prescribed format (Annex-B), may forward the application along-with its element recommendations, duly signed by its Chairman/President, to the Export-oriented Sector Registration Cell (ESRC) of FBR.

The ESRC shall examine the particulars and recommendations of the respective Associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the Ministry of Commerce for allowing concessionary tariff through respective DISCOs/Gas Companies.

In case the ESRC spots any discrepancies in the verification report and data available with FBR, the matter will be referred to Inland Revenue field formations for ground-check, report, and recommendations. The newly enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.

The DISCOs/Gas Companies shall ensure that the taxpayers are active on FBR’s (Sales Tax) Active Taxpayers List (ATL) as shared with DISCOs/Gas Companies each month before generating the monthly utility bill. In case the taxpayer is found non-active on the ATL, the standard utility tariff shall apply on the supply of utilities for the relevant period.

Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector Association may approach the IR field formation concerned for verification of its business particulars and onward submission of the report on the prescribed format to the ESRC within 15 days of the submission of the application.

The procedure for registration of new entrants in Export-oriented Sectors shall become applicable with effect from January 1, 2021, FBR added.