Supply of power, gas to textile mill: MoC requests MoE to withdraw reduced tariff

ISLAMABAD: The Ministry of Commerce has requested the Ministry of Energy to withdraw concessionary tariff on supply of electricity and gas to Karachi-based M/s Shan Textiles for allegedly violating agreed terms and conditions.

According to a December 22, 2021 letter written by a Section Officer of the Commerce Ministry to Secretary Petroleum and Secretary Power, the Federal Board of Revenue (FBR), M/s Shan Textiles bearing NTN-4128571-9 requested for concessionary tariff rates on supply of electricity and gas however, on physical verification by the field office CTO Karachi, it is reported that another unit namely M/s Evaluation Textile with the same proprietor also exists on the same premises and sharing electricity and gas through same meter and engaged in manufacturing of other than five export-oriented sector’s goods (engaged in manufacturing of cosmetics items).

According to the FBR, it has already issued instructions to the trade bodies to physically verify the business premises of applicants seeking reduced tariff, however, it is observed the concerned trade body is not following the instructions and merely forwarding the cases to the Board. The association has again been asked to forward cases after due scrutiny of documents and physical verification of business premises.

Accordingly, on the basis of verification report of field formation of the FBR, the application of M/s Shan Textiles seeking reduced tariff has been rejected, said Khalid Mehmood, Second Secretary (ST-L&P), FBR, in his letter to the Commerce Ministry.

Copyright Business Recorder, 2021