Power or RLNG, gas tariff: FTO directs FBR to extend grant of concessionary regime to Nishat Mills Ltd

LAHORE: Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah has directed Federal Board of Revenue (FBR) to extend grant of concessionary regime of electricity or RLNG and gas tariff to Nishat Mills Limited, Lahore.

Sources said Chairman Nishat Mills Ltd Mian Muhammad Mansha had filed a complaint before the FTO stating that he had applied to the FBR for grant of concessionary regime of electricity, or RLNG and gas tariff on 17.03.2022, 11.04.2022 and 09.05.2022 regarding three connections; one for electricity and two for RLNG under prescribed procedure notified vide FBR’s Circular No 4/2020 dated 30.12.2020.

Instead of processing the request under prescribed procedure, the Board raised unnecessary objections and sent the matter to the Large Tax Office (LTO) Lahore regarding issues relating to inadmissibility of input tax adjustment.

According to the complaint, the LTO Lahore issued show cause notice based on FBR’s pointations; however, has yet not responded to the FBR regarding verification of exports status of the complainant for processing the request.

The Advocate on Record stated that the complainant is, according to export data of FY 2020-21, top exporter of Pakistan and has no reservation as to responding to the show cause notice issued on account of admissibility of input tax but asserts that it has nothing to do with verification of complainant’s antecedents complying to FBR’s Circular No 4/2020 dated 30.12.2020.

Due to the late action/non-action by the FBR, he added, the complainant has to suffer additional payment to the tune of Rs 86 million only in the month of April 2022 as excess charges on account of tariff of electricity RLNG and gas.

According to him, the complainant is at fingers crossed as how Pakistan would aim higher exports due to such handling by state institutions while implementing policy decision which are approved at the level of ECC of the cabinet.

FTO Dr Jah discussed the matter telephonically with Chief Sales Tax, desiring him to respond to the complaint on instant grounds while considering the option of interim relief.

Copyright Business Recorder, 2022