Gas and electricity consumption: more registered units granted zero-rating facility

The Federal Board of Revenue (FBR) has granted sales tax zero-rating facility on the consumption of gas and electricity to more registered manufacturers of textile products, leather items, carpets, sports and surgical goods.
The FBR has also rectified errors in the notifications pertaining to zero-rating of sales tax on electricity/natural gas utilised by industrial units of five major export-oriented sectors.
The board on Thursday issued eight Sales Tax General Orders (STGOs) to implement the decision. According to STGOs, the zero-rating facility has been extended to many industrial units receiving natural gas from Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited.
The meter numbers, registration and other related data has been rectified for giving zero-rating facility on the electricity consumed by these industrial units. Similarly, the board has amended the previous list of manufacturing units entitled to zero-rating on power consumption as per jurisdiction of the electricity distributing companies. Amendments have been introduced in relevant general orders to rectify errors and correct the consumer numbers in some cases.
Separate amended lists contained registered units operating within the jurisdiction of Hyderabad Electric Supply Company (Hesco); Faisalabad Electric Supply Company; Lahore Electric Supply Company; Multan Electric Power Company; Gujranwala Electric Power Company and manufacturing units falling within the jurisdiction of Karachi Electric Supply Company (KESC).
A number of units have been included in the STGOs to whom electricity is being supplied by different power distributing companies for the purpose of zero-rating.
Manufacturers have to fulfil certain conditions for availing zero-rated facility on the electricity consumption.
STGO No 23 of 2007 has specified that the electricity supplied by the KESC to the relevant manufacturing units of the registered persons having sales tax registration numbers and electricity bill reference numbers/consumer numbers/account numbers, as the goods on which sales tax shall be charged at the rate of zero per cent. The zero-rating facility has been extended to more units of textile sector, weaving factories and a rice processing unit.
STGO No 24 of 2007 would deal with the units entitled to zero-rating on electricity supplied by Lesco; STGO25/2007, Fesco; STGO 26/2007, Mepco; STGO 27 of 2007 Gepco and would deal with the units entitled to zero-rating on electricity supplied by Hyderabad Electric Supply Company.
According to STGO No 30 of 2007, the board has specified that natural gas supplied by the Sui Northern Gas Pipelines Limited (SNGPL), to relevant manufacturing units having sales tax registration numbers and electricity bill reference numbers/consumer numbers/account numbers, as the good on which sales tax shall be charged at the rate of zero percent.
The Sales Tax General Order 29 of 2007 has issued list of industrial units on which sales tax zero-rating would be applicable on supply of natural gas by Sui Southern Gas Company Limited.