ISLAMABAD: Federal Board of Revenue (FBR) has included five associations of export oriented sector (erstwhile zero-rated sector) in the concessionary tariff regime of electricity, RLNG and gas.
The FBR issued Sales Tax Circular No. 01 of 2021 on Tuesday to include the members of five associations for providing concessionary tariff of electricity, RLNG and gas.
The associations are included:
(i) Pakistan Tanners Association (PTA)
(ii) Pakistan Knitwear & Sweater Exporters Association (PAK-SEA)
(iii) Towel Manufacturers’ Association of Pakistan (TMA)
(iv) All Pakistan Bedsheets & Upholstery Manufacturers Association (APBUMA)
(v) Pakistan Silk & Rayon Mills Association
Previously, through Sales Tax Circular No. 04 dated December 30, 2020, the FBR notified following associations for referring their members for reduced tariff of electricity and gas:
01. All Pakistan Textile Mills Association (APTMA)
02. Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)
03. Pakistan Hosiery Manufacturers Association (PHMA)
04. Pakistan Textile Exporters Association (PTEA)
05. Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA)
06. Pakistan Sports Goods Manufacturers & Exporters Association
07. Surgical Instruments Manufacturing Association of Pakistan
08. Pakistan Denim Manufacturers and Exporters Association
09. All Pakistan Textile Processing Mills Association (APTPMA)
The FBR issued standard operating procedure (SOP) to start the registration process.
In a notification, the FBR said that the economic coordination committee of the cabinet had approved the reduced rate to manufacturers on supply of electricity and gas in a meeting held on December 12, 2020. The ECC also directed the FBR, ministry of commerce and other stakeholders to devise a standard operating procedure (SOP) for enrollment of registered persons under the export-oriented sectors (erstwhile zero-rated sectors) to quality concessionary regime of electricity, RLNG and gas tariff.
Accordingly, a meeting was held in FBR on December 22, 2020 and as a result of thorough deliberations amongst all stakeholders the requisite SOP has been agreed upon and being rolled onto.
The FBR said the following SOP adopted for enrollment of manufacturers for grant of reduced tariff rate:
(i) For new registration of manufacturers for concessionary tariff rates, applicants may apply respective representative association.
(ii) The Association concerned, after verifying the particulars on the prescribed format, may forward the application along with its element recommendations, duly signed by its chairman/president, to the export oriented sector registration cell (ESRC) of the FBR.
(iii) The ESRC shall examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the ministry of commerce for allowing concessionary tariff through respective Distribution Companies (DISCOs)/Gas companies.
(iv) In case the ESRC spots any discrepancies in the verification report and data available with the FBR, the matter will be referred to Inland Revenue field formations for ground-check, report and recommendations.
(v) The newly enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.
(vi) The DISCOs/gas companies shall ensure that the taxpayers are active on FBR’s (Sales Tax) Active Taxpayers List (ATL) as shared with DISCOs/gas companies each month before generating the monthly utility bills. In case the taxpayer is found non-active on the ATL, standard utility tariff shall apply on supply of utilities for the relevant period.
(vii) Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector association, may approach the Inland Revenue field formation concerned for verification of its business particulars and onward submission of report on the prescribed format to the RSRC within 15 days of the submission of the application.
The procedure for the registration of new entrants in export oriented sectors shall become applicable with effect from January 01, 2021.