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Home Islamabad

Extra ST on power, gas bills likely to go up

byCustoms Today Report
24/05/2014
in Islamabad, Latest News
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ISLAMABAD: The government is considering double ‘extra sales tax’ from 5 to 10 percent on all unregistered electricity and gas consumers having industrial or commercial connections in budget 2014-15.

As per details, 5 percent extra sales tax on electricity and gas connections was announced in last budget to force the unregistered persons to get registered with the sales tax department.

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However, the government move failed to yield the desired results as the unregistered persons engaged in industrial and commercial activities were willing to pay additional sales tax instead of getting sales tax registration. Taking the fact into account, the FBR has proposed raising the rate of extra sales tax from 5 to 10 percent in budget (2014-15). To promote documentation and capture extra tax from persons outside the sales tax net, vide SRO 509(1)/2013 dated June 12, 2013, extra sales tax at 5 percent of the billed amount was imposed on all unregistered electricity and gas consumers having industrial or commercial connection and monthly bill exceeding Rs15,000. A new chapter IVA was inserted in the Sales Tax Special Procedure Rules, 2007 vide SRO 510(1)/2013, to prescribe the procedure for implementation of the measure. The RTOs/ LTUs where the electric power and natural gas distribution firms are registered were required to co-ordinate with them for proper and timely implementation.

The board has also provided data of active taxpayers to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) for charging 5 percent extra sales tax from commercial and industrial consumers at the time of generating bills. The power distribution companies are required to charge the extra levy from ‘unregistered’ commercial and industrial gas consumers. In this way the power and natural gas distribution companies will know about unregistered as well as non-compliant units, which are not part of the ATL.

 

 

Tags: billsextra sales taxFBRgasIslamabad RegionpowerSui Northern Gas Pipelines Limited (SNGPL)Sui Southern Gas Company Limited (SSGC)

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