New entrants/manufacturers: FBR announces new criteria for registration in export-oriented sectors

ISLAMABAD: The Federal Board of Revenue (FBR) has announced new criteria for registration of new entrants/manufacturers in export-oriented sectors to qualify for availing concessionary regime of electricity, the RLNG, and gas tariff from January 1st, 2021.

The FBR Wednesday issued a new standard operating procedure (SOP) for registration of new manufacturers for concessionary tariff rates on supply of electricity and gas.

According to the FBR, the Economic Coordination Committee (ECC) of the Cabinet vide its decision in case No ECC-434/59/2020 dated 02.12.2020, directed the FBR, the Ministry of Commerce, and the other stakeholders to devise a SOP for enrollment of registered persons under the export-oriented sectors (erstwhile zero-rated sectors) to qualify concessionary regime of electricity, the RLNG, and the gas tariff.

Accordingly, a meeting was held in the FBR on December 22, 2020, and as a result of thorough deliberations among all stakeholders, the requisite SOP has been agreed upon and being rolled onto.

The main features of the SOP are: For new registration of manufacturers for concessionary tariff rates, applicants may apply through respective representative association, as listed.

The association concerned, after verifying the particulars on the prescribed format (Annex-B), may forward the application along-with its element recommendations, duly signed by its chairman/president, to the Export-oriented Sector Registration Cell (ESRC) of the FBR.

The ESRC shall examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc as required, and forward the case to the Ministry of Commerce for allowing concessionary tariff through respective DISCOs/gas companies.

In case the ESRC spots any discrepancies in the verification report and data available with the FBR, the matter will be referred to the Inland Revenue field formations for ground-check, report, and recommendations.

The newly-enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.

The DISCOs/gas companies shall ensure that the taxpayers are active on the FBR’s (sales tax) Active Taxpayers List (ATL) as shared with the DISCOs/gas companies each month before generating the monthly utility bill.

In case the taxpayer is found non-active on the ATL, standard utility tariff shall apply on supply of utilities for the relevant period.

Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector association, may approach the IR field formation concerned for verification of its business particulars and onward submission of report on the prescribed format to the ESRC within 15 days of the submission of the application.

The procedure for registration of new entrants in export-oriented sectors shall become applicable with effect from lst January 2021, the FBR added.

Copyright Business Recorder, 2020