ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs 26.613 billion so far in fiscal year 2016-17 under 17 per cent sales tax imposed on electricity bills.
Sources said that the country’s top revenue authority collected Rs 4,833 billion in 2013-14 and Rs 9.485 million in 2014-15 from both domestic and industrial electricity consumers.
According to the FBR, sales tax is being charged at the rate of 17 percent ad valorem on all taxable supplies under section 3(1) of the Sales Tax Act, 1990, including supply of electricity. The rate of 17 percent is applicable since 1 July, 2013 and prior to this, the rate was 16 percent ad valorem.
The tax collection on account of extra tax of five percent has also increased from Rs 6.059 billion in 2013-14 to Rs 5.944 billion in 2015-16. The tax collection under Further Tax, imposed through the Finance Act, 2013, at the rate of 2 percent increased to Rs 3.182 billion in 2015-16 from Rs 1.585 billion in 2013-14. Further Tax at 2 percent is currently being charged to unregistered persons. Further Tax is not applicable to electricity supplied to domestic and agricultural consumers.
