The Federal Board of Revenue (FBR) has rescinded all notifications/orders allowing zero-rating facility of sales tax on electricity, gas, coal, furnace oil and diesel oil to registered persons, including exporters from July 1, 2019. According to the FBR, it has issued directions to all Chief Commissioners Inland Revenue on withdrawal of sales tax zero-rating facility on electricity, gas, coal, furnace oil and diesel oil.
The FBR has directed all Chief Commissioners IR, with the request to coordinate with utility provider authorities regarding implementation of aforesaid amendments in the General Order for withdrawal of the zero-rating facility from the respective registered persons and to submit report by August 1, 2019 regarding the implementation. The FBR has asked M/s SSGCL/SNGPL/Pesco/Iesco/Lesco/Gepco/Fesco/Mepco/Hesco/Qesco/Sessco, K-Electric, M/s Lasbella Industrial Estates Development Authority (LIEDA), M/s Nadeem Power Generation (Pvt) Limited, M/s Sitara Energy Limited, Faisalabad, M/s Lucky Energy Limited, Karachi, and M/s Sunder Industrial Estates with the request to start charging of sales tax on the supply of electricity/gas to all the units of five zero-rated sectors.
The FBR has directed M/s Attock Petroleum, M/s Hascol Petroleum, M/s Pakistan State Oil, M/s Shell Pakistan, M/s Byco Petroleum Pakistan Ltd, M/s Total Parco Pakistan Limited, M/s Pak Arab Refinery Limited, M/s New One Oil Traders, M/s Diamond Petroleum, M/s Star Oil Enterprises, M/s Bilal Iqbal (Pvt) Limited, M/s Awan Trading Co (Pvt) Ltd, M/s Agro Trade (Pvt) Ltd, M/s Protocol Synergies (Pvt) Ltd, M/s Masoodia and M/s Maayar Commodities International, M/s Lucky, Commodities, M/s World Traders with the request to start charging of sales tax on supplies of coal, diesel and furnace oil to all the registered persons who were earlier allowed zero-rating facility through different STGOs.