The Federal Board of Revenue (FBR) and Ministry of Water and Power held a follow-up meeting at FBR House to discuss tax related issues of power sector, sources toldBusiness Recorder on Tuesday. According to sources, the issues like sales tax on supply of electricity to Azad Jammu & Kashmir (AJ&K) and other issues are expected to be resolved during current week. Another meeting is likely to be held at the FBR House during current week.
According to the sources, a mutual consensus is required among stakeholders to deal with the issue of sales tax on power supply to AJ&K. The main question arises if FBR gives exemption of sales tax on electricity supply to the AJK, how the issue of input tax adjustment would be resolved. In case of exemption, input would not be allowed. Thus, how the issue of input adjustment would be resolved in this issue is the main question.
The meeting also discussed issue relating to the Federally Administered Tribal Areas (FATA) and sales tax on cash collection basis. Among other issues, the meeting discussed adjustment of input tax relating to transmission and distribution losses.
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