ISLAMABAD: Federal Board of Revenue (FBR) has allowed zero-rated sales tax facility to 14 industrial units on supply of electricity.
According to Secretary IR-ST &FE, Raza Ashfaq Sheikh, in exercise of powers conferred by clause (d) of section 4 of the Sales Tax Act, 1990 read with SRO 1125(I)/2011 dated 31.12.2011, the Federal Board of Revenue has amended its Sales Tax General Order Nos of 2007 dated 13th September 2007.
Most of the textile units are based in Faisalabad. In order to boost exports of the country, the government has allowed zero-rated sales tax to five different sectors engaged in manufacturing.
The exemption has been provided under SRO 1125 (I)/2011 to reduce the cost of manufacturing by export sectors. The exemption of zero-rating has been allowed on other utility such as gas. Besides, in the last budget, the government has also allowed zero-rate on purchase of oil by the export units. In the latest notifications, the FBR also allowed the sales tax exemption to two units on their monthly bills of gas.
