FBR withdraws sales tax zero rating of nine textile units


ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn sales tax zero rating on supply of electricity of nine textile units on the charges of misusing the facility.
An order issued by the FBR on Monday stated it had suspended the facility of zero-rated sales tax on purchase of electricity by nine textile units; eight from Faisalabad and one from Karachi.
Following are the textile units whose sales tax zero rating have been withdrawn:
01. Majestic Garments (Pvt) Limited
02. Zahid Jee Fabrics
03. Qadria Printing and Dying Textile Industry
04. Rehmat Textiles
05. Sandal Dyestuff Industries
06. Shahzad Siddiqui (Pvt) Limited
07. Shahzad Sadiq (Pvt) Limited
08. Specialty Chemical Industries
09. Lucky Industries, Karachi
The FBR withdrew the facility on recommendations of respective Regional Tax Offices (RTOs). The FBR directed the chief commissioners of both the RTOs to ensure implementation of normal tax rate on supply of electricity to the taxpayers and submit report in respect of action taken / recovery made for misuse of the facility.
The FBR also asked Faisalabad Electricity Supply Company, and K-Electric to charge normal rate on consumption of electricity by the taxpayers.