FBR slaps extra sales tax up to 17% on unregistered persons

FBR slaps extra sales tax up to 17% on unregistered persons

ISLAMABAD: Federal Board of Revenue (FBR) has imposed extra sales tax up to 17 per cent on unregistered industrial and commercial connection holders of electricity and gas utilities.

However, this levy is applicable to consumers who are not sales tax registered persons or not appearing on the Active Taxpayers List (ATL).

The FBR issued SRO 1222(I)/2021 on Friday to levy tax, on the total billed amount excluding the amount of federal taxes, in addition to the tax payable under Sub-Section (1) of Section 3 of the Sales Tax Act, 1990, on supplies of electric power and natural gas to persons having industrial or commercial connections. But this levy is applicable on persons who have either not obtained a sales tax registration numbers or are not on the ATL maintained by the FBR.

The tax shall applicable at an extra rate as under, subject to the mode, manner, conditions, and limitations prescribed in the rules, namely:

Industrial connections holders: the tax rate shall be 17 per cent.

Commercial connections holders:

— The tax rate shall be five percent on Rs10,000 monthly billed amount.

— The tax rate shall be 7 per cent on amount between Rs10,001 to Rs20,000 monthly bill.

— The tax rate shall be 10 per cent on amount between Rs20,001 to Rs30,000 monthly bill.

— The tax rate shall be 12 per cent on amount between Rs30,001 to Rs40,000 monthly bill.

— The tax rate shall be 15 per cent on amount between Rs40,001 to Rs50,000 monthly bill.

— The tax rate shall be 17 per cent on monthly bill amounting Rs50,001 and above.

The FBR issued another SRO 1223(I)/2021 to exclude certain sectors from the application of the extra sales tax.

The tax shall not be applicable on supplies made by steel sector and edible sector.

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