BAFL 45.66 Increased By ▲ 0.56 (1.24%)
BIPL 20.08 Decreased By ▼ -0.17 (-0.84%)
BOP 5.34 Decreased By ▼ -0.06 (-1.11%)
CNERGY 4.54 Increased By ▲ 0.01 (0.22%)
DFML 16.01 Increased By ▲ 0.33 (2.1%)
DGKC 78.62 Increased By ▲ 5.74 (7.88%)
FABL 27.80 Increased By ▲ 0.65 (2.39%)
FCCL 18.86 Increased By ▲ 1.21 (6.86%)
FFL 8.96 Decreased By ▼ -0.13 (-1.43%)
GGL 12.85 Increased By ▲ 0.21 (1.66%)
HBL 111.54 Increased By ▲ 0.88 (0.8%)
HUBC 122.23 Increased By ▲ 0.71 (0.58%)
HUMNL 7.69 Increased By ▲ 0.34 (4.63%)
KEL 3.29 Increased By ▲ 0.06 (1.86%)
LOTCHEM 27.80 Increased By ▲ 0.48 (1.76%)
MLCF 42.36 Increased By ▲ 3.03 (7.7%)
OGDC 110.37 Increased By ▲ 2.37 (2.19%)
PAEL 18.97 Increased By ▲ 1.41 (8.03%)
PIBTL 5.46 No Change ▼ 0.00 (0%)
PIOC 114.91 Increased By ▲ 6.91 (6.4%)
PPL 94.72 Increased By ▲ 2.97 (3.24%)
PRL 25.32 Increased By ▲ 0.44 (1.77%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 64.32 Increased By ▲ 1.22 (1.93%)
SSGC 12.26 Increased By ▲ 0.37 (3.11%)
TELE 8.36 Increased By ▲ 0.17 (2.08%)
TPLP 13.35 Increased By ▲ 0.24 (1.83%)
TRG 83.84 Increased By ▲ 2.23 (2.73%)
UNITY 25.89 Increased By ▲ 0.14 (0.54%)
WTL 1.54 Increased By ▲ 0.02 (1.32%)
BR100 6,308 Increased By 126.6 (2.05%)
BR30 21,973 Increased By 434.1 (2.02%)
KSE100 61,691 Increased By 1160 (1.92%)
KSE30 20,555 Increased By 366.1 (1.81%)

ISLAMABAD: The federal government and provinces have declared that the transmission of electricity would be treated as a service from July 1, 2023, for which the Sales Tax Act would be amended through the next Finance Bill.

Sources told Business Recorder here on Wednesday that the decision has been taken during the 6th meeting of the National Tax Council chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.

The consensus has been developed that the power transmission has been declared as a service.

PM sets up panel for action plan: DISCOs to be handed over to provinces

The NTC decided with the consensus that the Place of Provision of Service Rules will take effect from 1st May 2023 after approval by the respective provincial cabinets. However, the exclusion of electric power transmission from the list of goods by the FBR, for which the Sales Tax Act is required to be amended through the Finance Bill, will take effect from 1st July 2023.

Sources explained that electricity is “good” under international classifications, but the supply of electricity is done through transmission which is a service. For example, independent power producers (IPPs) supply electricity through the National Transmission and Dispatch Company (NTDC). The next Finance Bill will amend the said section of the Sales Tax Act to exclude the transmission of electricity from the list of goods. The FBR has wrongly defined under section 2 (clause 12) that the “goods” included production, transmission and distribution of electricity.

Sources added that as per the decision of the NTC on Wednesday, the transmission of electricity through electrical grids would be excluded from the purview of the goods under the Sales Tax and will be treated as a service.

Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Engr Zamrak Khan Achakzai, Finance Minister Balochistan, SM Ahsen Tanveer, Minister for Industries Punjab, Himayatullah Khan, Adviser to the CM KP on Finance, SAPM on Revenue Tariq Mahmood Pasha, Special Secretary Finance, Chairman FBR, provincial finance secretaries and other senior officers from the Finance Division and the FBR attended the meeting.

The meeting considered and approved the recommendations of the Executive Committee of the NTC dated 28.03.2023, regarding the draft Place of Provision of Service Rules, which is a major milestone towards GST harmonisation across the country. The approval will help achieve the prior actions for the World Bank-funded RISE programme.

In conclusion, Finance Minister Senator Ishaq Dar appreciated the stakeholders for building consensus and for the settlement of the harmonisation of GST in the country.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Centre-provinces declaration: Power transmission will be treated as ‘service’ from July 1

Honour climate financing, PM asks developed world

CJP’s office says he’s ‘fully cognizant of his constitutional duties’

Expenditures: Higher mark-up payments may put big pressure: MoF

New regulatory safeguards placed to protect investors: SECP chief

BIT template issue settled: Crucial FTA with GCC finalised

David Warner included in settled Australia squad for first Pakistan Test

‘ACSR bunting conductor issue’ Senate Secretariat withdraws letter of Senator Abro

Water supply project: Sindh govt signs Rs51.6bn contract with Kuwaiti firm

Trump calls on supporters to 'guard the vote' in Democratic-run US cities

One dead, two injured after man attacks tourists near Paris' Eiffel Tower