KARACHI: The Federal Board of Revenue (FBR) has suspended zero-rated sales tax facility on supply of electricity and gas to nine textile units and directed tax office to initiate proceedings against misuse.
The FBR issued two different Sales Tax General Orders (STGOs) to suspend the facility. The facility has been suspended on the recommendation of the Regional Tax Office (RTO) Karachi.
The FBR directed chief commissioner RTO Karachi to submit report in respect of action taken or recovery made in the case of misuse of the facility. The FBR also instructed the chief commissioner to coordinate with the Sui Southern Gas Company Limited and K-Electric to discontinue the zero-rating facility of the units and start charging normal sales tax at 17 percent.
