ISLAMABAD: Federal Board of Revenue (FBR) has freezed all bank accounts of Islamabad Electric Supply Company ( IESCO) To collect Withholding Tax (WHT) power Company is allegedly involved in violation of rules.
After closure of 31 bank accounts of IESCO, payment to Central Power Purchasing Agency (CPPA) could not be made while salaries of employees of Power Company have been blocked. FBR wanted to charge IESCO with Rs 2.93 billion on account of WHT.
Islamabad High Court (IHC) had earlier granted a stay order to IESCO against recovery of the ‘disputed tax ‘by FBR. Also IHC restrained FBR from effecting recovery through coercive measures till decision of the case. However, Assistant Commissioner FBR has served a notice to IESCO asking it to pay above Rs 2 billion WHT, which according to Chief Executive Officer of IESCO was sheer violation of the rules.
On finding recovery notice from FBR, legal team of IESCO approached IHC and the Court has issued a contempt of court notice to Assistant Commissioner Furukh Sial.
According to IESCO officials payment to CPPA has been blocked while salaries of IESCO’s employees for January could not be cleared due to closure of Company’s bank accounts by FBR. Even payments of pension amounts to all retired staff of Company could not be made. Chief IESCO Yusuf Awan has sent a letter to Finance Minister, Secretary Ministry of Water and Power and Chairman FBR and raised serious concerns regarding recovery of WHT by FBR.
Available copy of IESCO chief’s letter to Finance Minister Ishaq Dar, Secretary Ministry of Water and Power and chairman FBR revealed the top man of IESCO has asked the authorities to stop FBR from coercive measures of charging the Company.
Awan has also warned authorities to restore the bank accounts of IESCO, otherwise payments to CPPA could not be remitted and another power crisis might be in the offering.
