FBR directs action against misuse of zero-rating facility


KARACHI: Federal Board of Revenue (FBR) has directed chief commissioner Inland Revenue of Regional Tax Office (RTO)-III Karachi to take action against two textile units for misusing zero-rate sales tax on supply of electricity.




The FBR withdrew sales tax zero rating on supply of electricity to two textile units for misusing the facility.

The FBR withdrew zero rate facility to textile units including KBI Textile Mills and Texmat Industries Limited on the recommendation of the tax office.

The zero-rate sales tax on supply of electricity and gas has been allowed by the government to textile units to reduce the cost of production and make products compatible in international markets.

The chief commissioner of RTO has been directed to coordinate with K-Electric regarding implementation of normal sales tax on supply to both the units.

The FBR also directed the chief commission to submit report in respect of action taken against the unit for misusing the facility and recovery made against tax evasion.

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