The Federal Board of Revenue (FBR) has given sales tax zero-rating facility on consumption of natural gas and electricity to over 85 more registered manufacturers of textile, leather, carpets, sports and surgical goods producers.
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 Saturday issued three Sales Tax General Orders (STGOs) to implement the decision. According to the STGOs, the zero-rating facility has been extended to many industrial units receiving natural gas from Sui Northern Gas Pipelines Limited (SNGPL).
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 notifications to rectify errors and correct the consumer numbers in some cases. Separate amended lists contained registered units operating within the jurisdiction of Fasialabad Electric Supply Company (Fesco) and Lahore Electric Supply Company (Lesco).
A number of units have been included in the revised SRO to whom electricity is being supplied by 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 21 of 2007 has specified that electricity supplied by Fesco to 67 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 percent.
STGO No 20 of 2007 deals with seven units entitled to zero-rating on electricity supplied by Lesco. According to STGO 22 of 2007, the board has specified that natural gas supplied by Sui Northern Gas Pipelines Limited (SNGPL) to 12 more manufacturing units 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 percent.
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