ISLAMABAD: Federal Board of Revenue (FBR) has granted sales tax zero-rated on consumption of electricity to five textile units in order to reduce their cost of production for subsequent increase in the country’s exports.
The sales tax zero-rating has been allowed under SRO 1125(I)/2011, which was issued by the FBR to facilitate five export sectors to make purchases of raw material and other inputs including electricity and gas for their production of goods at lower cost.
The FBR allowed zero-rating to the textile units, including Sara Textile, Corporate Regional Taxpayers Office, Karachi; Qureshi Tannery, Corporate Regional Taxpayers Office, Lahore; Iftikhar Ahmad Weaving Factory, RTO Faisalabad; A. M. Cotton Factory, Corporate Regional Tax Office, Lahore and Interloop Limited, RTO, Faisalabad.
The FBR through different Sales Tax General Orders (STGOs) issued on January 16 and 17, 2018 directed the concerned electric supply utilities to provide electricity the mentioned above textile units at zero-rated sales tax.
