FBR discontinues zero rating facility to two textile units

ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn sales tax zero rating to two textile units in Karachi for misusing facility on consumption of gas and electricity.

According to Sales Tax General Order (STGO) issued on Wednesday, the FBR withdrew the facility of zero rating that was granted on consumption of electricity and gas to companies including A R Hosiery Works and International Chrome Tannery.

The FBR said that the zero-rated facility was withdrawn on the recommendation of Regional Tax Office (RTO)-III Karachi.

The FBR directed the Chief Commissioner Inland Revenue of RTO-III Karachi to communicate with concerned authorities for charging the normal sales tax rates from those textile units.

The FBR further directed the chief commissioner to submit report in case of misuse of the facility.

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