Concessionary tariff eligibility rules notified

ISLAMABAD: The Federal Board of Revenue (FBR) on Friday notified procedures for new registration of manufacturers for concessionary tariff rates on supply of electricity and gas.

The standard operating procedures were notified through a sales tax circular no 4 of 2020 released on Friday. The procedure for registration of new entrants in export-oriented sectors shall become applicable with effect from Jan 1.

Under the procedures, applicants will apply through respective representative associations. The association, after verification, will forward the application to the FBR’s Export-oriented Sector Registration Cell (ESRC).

The ESRC will examine the particulars and recommendations of the respective associations and counter-verify particulars of taxpayers including declarations in the registration profile etc. as required, and forward the case to the Ministry of Commerce for allowing concessionary tariff through respective distribution/gas Companies.

In case, the ESRC spots any discrepancies in the verification report and data available with FBR, the matter will be referred to Inland Revenue field formations for ground-check, report and recommendations. The newly-enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.

Meanwhile, the Discos/gas companies will ensure that taxpayers are on the FBR’s (Sales Tax) Active Taxpayers List (ATL) as shared with Discos/gas companies each month before generating the monthly utility bill.

In case the taxpayer is not on the ATL, standard utility tariff will apply on supply of utilities for the relevant period. Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector association, may approach the Inland Revenue field formation concerned for verification of its business particulars and onward submission of report in the prescribed format to the ESRC within 15 days of the submission of the application.