FBR allows zero-rate to 5 textile units on electricity consumption


ISLAMABAD: Federal Board of Revenue (FBR) has allowed sales tax zero-rated on consumption of electricity to five textile units in order to reduce their cost of production for subsequent increase in the country’s exports.
The sales tax zero-rating has been allowed under SRO 1125(I)/2011, which was issued by the FBR to facilitate five export sectors to make purchases of raw material and other inputs including electricity and gas for their production of goods at lower cost.
The FBR allowed zero-rating to the following textile units along with their registration with respective tax offices:
01. Sara Textile, Corporate Regional Taxpayers Office, Karachi
02. Qureshi Tannery, Corporate Regional Taxpayers Office, Lahore.
03. Iftikhar Ahmad Weaving Factory, RTO Faisalabad.
04. A. M. Cotton Factory, Corporate Regional Tax Office, Lahore.
05. Interloop Limited, RTO, Faisalabad.
The FBR through different Sales Tax General Orders (STGOs) issued on January 16 and 17, 2018 directed the concerned electric supply utilities to provide electricity the mentioned above textile units at zero-rated sales tax.