Sales tax zero-rating allowed

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

Sales tax zero-rating is allowed to the registered manufactures and exporters of five leading sectors, including textiles, leather, carpets, surgical and sports goods with a view to facilitate exports, it said.

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 of SAS Tex Export Pvt Ltd, Noor Processing, Spun Yarn Research and Development Company and Chiniot Fabrics.