Withholding tax rates on electricity consumption for tax year 2019

KARACHI: The electricity supply company shall collect advance tax from industrial and commercial consumer as per updated withholding tax card for tax year 2019 issued after amendments made to Income Tax Ordinance, 2001 through Finance Supplementary (Second Amendment) Act, 2019.

Federal Board of Revenue (FBR) issued following withholding tax rates under Section 235 of Income Tax Ordinance, 2001 to be collected by person preparing electricity bills from commercial and industrial consumers of electricity along with payment of electricity consumption charges:

Does not exceed Rs. 400: Zero tax

Exceeds Rs400 but does not exceed Rs600: Rs80

Exceeds Rs600 but does not exceed Rs800: Rs100

Exceeds Rs800 but does not exceed Rs1000: Rs160

Exceeds Rs1000 but does not exceed Rs1500: Rs300

Exceeds Rs1500 but does not exceed Rs3000: Rs350

Exceeds Rs3000 but does not exceed Rs4500: Rs450

Exceeds Rs4500 but does not exceed Rs6000: Rs500

Exceeds Rs6000 but does not exceed Rs10000: Rs650

Exceeds Rs10000 but does not exceed Rs15000: Rs1000

Exceeds Rs15000 but does not exceed Rs20000: Rs1500

Exceeds Rs20000: (i) At the rate of 12 percent for commercial consumers; (ii) at the rate of 5 percent for industrial consumers.

The tax shall be:

(i) Adjustable In case of company.

(ii) in case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.

(iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable.

(iv) Final for CNG Stations.

The withholding tax on domestic consumers of electricity under Section 235A shall be:

(i) If the amount of monthly bill is Rs75,000 or more: 7.5 percent

(ii) If the amount of monthly bill is less than Rs75,000: the tax rate shall be zero.

The withholding tax from every steel melters and composite steel units under Section 235B shall be Re 1 per unit of electricity consumed and the tax shall be non-adjustable.

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