Zero-rating regime: GST imposed on power supply to 85 registered textile units

The Federal Board of Revenue has imposed 16 percent sales tax on supply of electricity to 85 registered textile units and other manufacturers-cum-exporters operating within the zero-rating regime. In this regard, the FBR has issued two sales tax general orders here on Saturday.
Through the orders, the FBR has taken enforcement measures for withdrawal of sales tax zero rating facility on electricity consumed by 85-registered textile and other units being non-filers, non-active taxpayers and cancellation, suspension and de-registration. The units which have been de-notified for sales tax zero rating on electricity would be liable to pay 16 percent sales tax along with their electricity bills in future and there would be no sales tax zero rating facility for them.
The FBR has issued instructions to the Chief Commissioner, Regional Tax Office, Islamabad, to co-ordinate the implementation of aforesaid amendments in the General Order by the Islamabad Electric Supply Company (Iesco) Authorities for the respective registered persons. The FBR has asked the M/s Islamabad Electric Supply Company (Iesco), with request to start charging sales tax on the supply of electricity to these units.
According to another order, the FBR has directed the Chief Commissioner(s), Regional Tax Office, Multan and Bahawalpur to co-ordinate for collection of sales tax from these units by the M/s Multan Electric Power Company (Mepco) Authorities for registered persons. The FBR has also asked the M/s Multan Electric Power Company, with request to start charging sales tax on the supply of electricity to units mentioned in the above Table with immediate effect.