Wednesday, December 8, 2021

FBR looks for new exporters for energy tariff benefits

KARACHI: The Federal Board of Revenue (FBR) on Thursday began search for new exporters who can avail the concessionary tariffs on electricity and gas supply in line with the government’s decision earlier last month.

The FBR, through an ‘instant’ office order, established an export-oriented sector registration cell for manufacturers of export-oriented sectors (erstwhile zero-rated sectors) to process requests for concessionary tariffs on supply of electricity and gas.

“The cell shall examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the ministry of commerce for the further necessary action,” the FBR said.

The cell will liaise with the offices of Inland Revenue for physical check and report / recommendations, in case any discrepancy in the verification report.

Ministry of commerce submitted a summary before a meeting of the Economic Coordination Committee (ECC) of the cabinet on December 2, 2020 to re-consider its earlier decision in October regarding procedure for registration under concessionary regime of electricity, re-gasified liquefied natural gas and gas in export-oriented sectors. After due deliberation, the ECC directed to maintain status quo with a condition that FBR may register new manufacturers or exporters in five export oriented sectors in coordination with the ministry of commerce till June, 2020.

The FBR in response to the ECC approval issued no objection for allowing concessionary rate on supply of electricity / gas to 4,084 taxpayers, who are availing zero-rating of sales tax on supply of the utilities under rescinded statutory regulatory order (SRO 1125(I)/2011) and their particulars existed in various sales tax general orders issued in this regard till June 30, 2019.

The FBR also agreed to start new registration of taxpayers in export oriented sector for facilitating the eligible manufacturers.

Officials in the FBR said the facility would only be available to taxpayers whose names are on the active taxpayers list (ATL).

The FBR said it shares a monthly ATL list with distribution companies / gas companies every month. “Therefore, the utility companies should ensure that concessionary utility tariff is accorded to only those manufacturers/ taxpayers that appear on the ATL while generating monthly electricity / gas bills,” the FBR said.

In October, the government granted special concessions on power and gas tariffs to exporters. Electricity tariffs were decided at 7.5 cents per kilowatt-hour and $6.5/million metric British thermal unit for gas tariff.



Source: The News

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