FBR suspends zero-rate sales tax on electricity to Olympia Spinning and Weaving Ltd
KARACHI: Federal Board of Revenue (FBR) has withdrawn the sales tax zero rate facility on consumption of electricity that was allowed to Olympia Spinning and Weaving Mills Limited on recommendation of Regional Tax Office (RTO) Karachi.
In a Sales Tax General Order (STGO) No. 41 of 2017, the FBR suspended the facility to the textile unit, presently under the jurisdiction of Large Taxpayers Unit (LTU) Karachi.
The FBR directed the chief commissioner of LTU Karachi to coordinate with K-Electric regarding the implementation of normal sales tax rate on consumption of electricity by the textile unit. The LTU Karachi has been further advised to submit report in respect of action taken or recovery made, if any, for misuse of the facility.