FBR updates withholding tax rates for electricity consumers

FBR updates withholding tax rates for electricity consumers

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on the amount paid for electricity bills by commercial, industrial and domestic consumers.

The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

Under Section 235 of Income Tax Ordinance, 2001 person preparing electricity bill shall collect withholding tax from commercial and Industrial consumers of electricity along with payment of electricity consumption charges.

The withholding tax rates for gross amount of Electricity Bill of Commercial and Industrial consumer:

Does not exceed Rs. 400: Rs. 0

Exceeds Rs. 400 but does not exceed Rs. 600: Rs. 80

Exceeds Rs. 600 but does not exceed Rs. 800: Rs. 100

Exceeds Rs. 800 but does not exceed Rs. 1000: Rs. 160

Exceeds Rs. 1000 but does not exceed Rs. 1500: Rs. 300

Exceeds Rs. 1500 but does not exceed Rs. 3000: Rs. 350

Exceeds Rs. 3000 but does not exceed Rs. 4,500: Rs. 450

Exceeds Rs. 4500 but does not exceed Rs. 6000: Rs. 500

Exceeds Rs. 6000 but does not exceed Rs. 10000: Rs. 650

Exceeds Rs. 10000 but does not exceed Rs. 15000: Rs. 1000

Exceeds Rs. 15000 but does not exceed Rs. 20000: Rs. 1500

Exceeds Rs. 20000: (i) at the rate of 12 percent for commercial consumers; and (ii) at the rate of 5 percent for industrial consumers

(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

(i) Minimum tax for CNG Stations (Ref S.234A) (3).

Under Section 235A of the Ordinance, person preparing electricity bill shall collect withholding tax from domestic consumers along with payment of electricity consumption charges.

Withholding tax rate on domestic consumers:

(i) if the amount of monthly bill is Rs,75,000/- or more: 7.5 percent

(ii) if the amount of monthly bill is less than Rs, 75,000: 0 percent

The tax deducted from billed amount for domestic consumers shall be adjustable.

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