KARACHI: The Federal Board of Revenue (FRB) has decided to start inquiry into misuse of zero-rated sales tax facility on electricity consumption by two textile mills and one chemical company and directed to withdraw the zero-rated sales tax facility from them.
Sources told Customs Today that the FBR has directed chief commissioner of Regional Tax Office to complete the inquiry as soon as possible and submit his report. The companies which are involved in misuse of zero-rated sales tax facility include M/s Ameema Textile, M/s Shamin Knitwear and M/s Naeem Ghaffar Chemicals.
Sources said that FBR instructed concerned authorities to make sure recovery of pending dues of these companies. FBR also wrote a letter to K-Electric advising them to withdraw the tax facility on the connection of these companies and levy normal tax on them.
It is pertinent to mention here, previously, FBR has also taken same action against three different companies in November and July 2015.
