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 has been allowed to the registered manufactures 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 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 by Colony Textile Mills Ltd and Classique Textile Pvt Ltd.