New commercial connections: Discos endorse FBR decision to disallow unregistered applicants

Power distribution companies have endorsed the decision of the Federal Board of Revenue (FBR) that any application for commercial and industrial connection of electricity shall not be entertained unless the applicant is registered under Section 181 of the Income Tax Ordinance 2001.

In this regard, Ministry of Energy, Power Division, has conveyed to the CEOs of the power distribution companies that under section 181AA of the Income Tax Ordinance 2001, any application for commercial and industrial connections of electricity or natural gas shall not be entertained unless the applicant is registered under section 181.

With reference to the letter of September 27, 2019 received from the FBR requesting therein for faster implementation of the registration process of the commercial and industrial electricity consumers for tax purposes, Power Division directed power distribution companies.

The competent authority has desired strict compliance and implementation of the government instructions, Power Division added.

Chairman Federal Board of Revenue (FBR) Shabbar Zaidi had asked the Ministry of Power that any application for commercial/industrial connection of electricity/gas shall not be processed unless the applicant is registered under section 181AA of Income Tax Ordinance 2001.

The chairman Federal Board of Revenue in his letter to Ministry of Power has sought its help for the implementation of Section 181AA of Income Tax Ordinance-2001 which specifically stipulates that any application for commercial or industrial connection of electricity or gas shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under the said Section which pertains to filing of income tax returns.

The chairman FBR has already requested Ministry of Power to issue instructions to power distribution companies to apprise them that it is mandatory to be on "Active Taxpayers List (ATL)" for every commercial and industrial electricity or gas consumer. The chairman FBR appreciated the cooperation of Ministry of Power for providing the data of industrial and commercial users of electricity and hoped that Ministry of Power would also help in the implementation of Section 181AA of Income Tax Ordinance through the involvement of respective distribution companies.