ISLAMABAD: The Federal Board of Revenue (FBR) is going to move a proposal to condition the grant of new power and gas connections with the national tax number (NTN).
This condition will be applicable for corporate companies as well as association of persons (AOPs). The existing connections will also be converted on the basis of NTN.
At present, most of the power distribution companies only seek copy of memorandum and articles of association, along with attested certificate of incorporation and resolution of the company, authorizing a person signing (A&A) form.
Similarly, the gas provider companies demand the provision of valid trade license from civic authorities, copy of computerized national identification card (CNIC), copy of ownership document of property/shop where the connection is required.
Sources told Customs Today that a proposal in this regard is under consideration in the higher hierarchy of the tax authority. The movers of the proposal are of the view that it would automatically increase the tax base as well as check the misuse of connections.
There have been reports about the misuse of nature of connections as consumers get both power and gas connections of domestic nature, but use the said connections for commercial purposes.
As per the details of the said proposals, the FBR would bind both the Ministry of Petroleum and Natural Resources and Ministry of Water and Power to add this condition in the specified form for application for new connections. Whichever company or association of persons fails in provision of NTN number in the application form, will be refused new gas and electricity connection.
The sources said that the said proposal was under discussion and would likely to be forwarded to the Finance Ministry along with budgetary proposals for the upcoming budget. The Finance Minister Ishaq Dar will also be given a briefing on the possible positive impacts on the revenue collection as well as widening of tax base after the completion of deliberations on the said proposal.
