KARACHI: The Senate Sub-Committee on Finance has decided to investigate the issue of payment of sales tax of Rs20billion by private power houses and sought a report from the Federal Board of Revenue in this regard. The committee will also take feedback from field officers of regional tax offices concerned.
The meeting of the sub-committee was held under chairmanship of Senator Mohsin Aziz. Auditor General briefed committee on the report of payment of Rs480billion circular debts. Senator Mohsin Aziz said the government has opened bank accounts to borrow loan just in a day for the payment of circulars debts of Rs 480 billion.
The government has approved the payment without prior approval of the Auditor General. Markup of Rs10billion also had been paid, and payment of circular debts has been taken in emergency.
Senator Kamal Ali Agha said it is against the government law and rules. The capacity of power plants is not being increased but more plants are installed by the IPPs.
Saud Majeed said the committee has an objection on wrong payments. Although industrial, trade activities and loadshedding are angering the businessmen and common men yet excess payment of Rs32billion has been be made. The committee convener said there is a big gap between supply and demand. We have to determine as to who is responsible for payments. Adjustments should be paid first, he emphasized. The auditor general told the committee, despite additional payments of Rs32billion, the electricity has not been purchased.
After the dividends’ payment to shareholders, private power houses deposited withholding tax of Rs24million to 40million into government treasury but they claim back into their accounts. The committee asked the FBR that a report about the payment of sales tax of Rs20billion by the private power houses should be produced in the next meeting. If they have not paid yet then collect it from them, Majeed stressed.
