ISLAMABAD: Federal Board of Revenue (FBR) has decided to exempt 10 percent withholding tax on electricity consumed by five zero rated export oriented sectors: textile, leather, sports goods, carpets and surgical instruments.
All export oriented industrial units which have been zero rated from sales tax would be eligible to get exemption benefit of 10 percent withholding tax on the electricity bills, FBR would notify this decision after Eid-ul-Fitr, a senior Income Tax Official told Daily Times on Tuesday. Federal government had imposed this 10 percent withholding tax on industrial and commercial consumers of electricity in the budget 2008-09 to generate additional revenues. However, due to the strong protest lodged by the All Pakistan Textile Mills Association (APTMA) and other export oriented industries, Ministry of Water and Power and Ministry of Textile Industry proposed to the Economic Coordination Committee of the cabinet for its withdrawal. With the formal approval from the ECC, the FBR would issue formal notification after Eid holidays.
Input from Agencies