KARACHI: Federal Board of Revenue (FBR) has withdrawn sales tax zero rating facility of three textile units on consumption of gas and electricity.
According to a notification issued on Monday, the FBR discontinued the facility to three textile units on the recommendation of Regional Tax Office (RTO) -III Karachi for misusing the zero rating.
The FBR discontinued the sales tax zero rating on consumption of electricity of the textile units, included: Rajby Industries and MM Silk Mills (Pvt) Limited.
The textile units, whose zero-rating has been discontinued, are included: MM Silk Mills (Pvt) Limited and Fimcotex industries (Pvt) Limited.
The FBR directed chief commissioner RTO-III Karachi to impose normal sales tax on gas and electricity report and ensure recovery of any misuse in these cases. The FBR also directed to K-Electric and SSGCL to start charging normal tax rates in these cases.
