Govt levied upto to 58pc tax on commercial, domestic consumers electricity bills

Islamabad: The Federal government on Wednesday admitted before the Parliament that the Federal Board of Revenue is charging up to 58% tax on commercial and 29% on household electricity bills.

While briefing the Senate Finance and Revenue committee, Member Inland Revenue policy FBR disclosed that FBR is collecting the highest tax on electricity bills.

Member Policy Afaque Qureshi explained that there are five different types of taxes on electricity bills.

FBR has imposed 17% general sales tax and 10% advance income tax on the electricity bills of domestic consumers.

The government has also imposed an additional three percent tax from the persons who have not obtained sales tax registration or who are not on active taxpayer list, he added.

He further said that FBR is charging 40 to 58% tax on the commercial bills and extra Rs, 1950 plus 12% of the amount exceeding Rs 20,000 for commercial consumers while Rs 1950 Plus 5 pc of the amount exceeding Rs. 20,000 for industrial consumers.

The FBR presented that the GST regime is structured in a manner targeted towards placing reduced burden upon low/middle income segments of society. Goods related to basic human needs are either not subject to GST or are taxed to a minimal extent for example local supply of basic food items is zero-rated.

The committee also lamented repeated and heavy taxation of electricity bills and a number of food items and items of daily use by the citizens of Pakistan.

Committee Chairman Saleem Mandviwala said that there are many public complaints regarding heavy taxes on electricity bills and taxes on electricity bills should be reduced.

State Minister for Finance Ayesha Ghous Pasha said that the tax on their bill will be halved if people register with FBR.

She said that People have to pay taxes.

On this, Senator Kamil Ali Agha said that people are paying tax on everything then what else should be taxed.

He said that people are not getting registered with FBR due to double and heavy taxes.

The goods were seized in accordance with law. The committees recommended further probe in the matter and sought a report for further deliberation.

On the matter referred by the Chairman Senate regarding imposition of regulatory duty on Polyester Filament Yarn raised by Senior Vice Chairman, Pakistan Yarn Merchants Association, referred to the Committee on 20th October, 2022. The Federal Minister of State for finance said that the summary was rejected by the cabinet, she further said that the summary will again be placed in the cabinet after recommendations proposed by the Senate Committee. The matter was deferred for further deliberation.

The committee received a briefing on containers stuck at port Qasim due to Customs.

The FBR apprised the committee that presently 988 containers are held up at port Qasim, Karachi due to State Bank of Pakistan’s Circular through which such consignments are being released after the approval of the State Bank of Pakistan.

It was also apprised that in addition to above around 860 containers are also held due to non-fulfilment of various IPO conditions contraventions/mis-declaration and courts cases.


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