Sales tax zero-rating allowed

KARACHI: The Inland Revenue Wing of the Federal Board of Revenue (FBR) has granted sales tax zero-rating on the supply of gas and electricity to several industrial units.

Sales tax zero-rating is allowed to the registered manufacturers and exporters of five leading sectors, including textile, leather, carpets, surgical and sports goods with a view to facilitate exports.  However, there is a strict criterion for the grant of these exemptions in view of the massive misuse of the concessions by several dummy industrial units.

The board has advised the gas and electricity companies to stop charging sales tax on the use of gas and electricity from the notified companies.