The Federal Board of Revenue (FBR) has approached power distributing companies to allow concessionary tariff rates on supply of electricity/gas to the five more export associations covered as manufacturers of export-oriented sectors (the erstwhile zero-rated sectors).
The FBR has notified the decision through a sales tax circular number 1 of 2021 issued here on Tuesday.
According to the FBR’s communication to the Secretary, Ministry of Commerce and Secretary, Ministry of Energy on Tuesday, in pursuance to Ministry of Commerce letter and in continuation of FBA’s Circular No.04/2020, following Associations of the export-oriented sectors (erstwhile zero-rated sectors) are further inserted to Annex-A of the said Circular for forwarding of cases of taxpayers for enrollment under concessionary regime of electricity, RLNG and gas tariff:
- Pakistan Tanners Association (PTA);
- Pakistan Knitwear & Sweater Exporters Association (PAK-SEA);
- Towel Manufacturers’ Association of Pakistan (TMA);
- All Pakistan Bedsheets & Upholstery Manufacturers Association (APBUMA)
- Pakistan Silk & Rayon Mills Association.
The associations listed above shall follow the procedure for registration of new entrants in export-oriented sectors as envisaged in Circular 04/2020.
For new registration of manufacturers for concessionary tariff rates, applicants may apply through respective representative Association, as listed at Annex-A. 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, standard utility tariff shall apply on 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, FBR added.
