ISLAMABAD: The federal board of Revenue (FBR) will start registration of new entrants in nine export-oriented sectors for availing concessionary tariff rates on the supply of electricity and gas with effect from January 2021.
Sources said that the tax department has issued standard operating procedures (SOP) for the registration of new manufacturers under concessionary tariff rates on the supply of electricity and gas.
In this regard, the Economic Coordination Committee (ECC) of the Cabinet has directed the FBR, Ministry of Commerce and other stake-holders to devise SOPs for the enrolment of registered persons under the export-oriented sectors – erstwhile zero-rated sectors, to qualify concessionary regime of electricity, LNG and gas tariff.
Accordingly, a meeting was held on December 22 after which all stakeholders agreed over the required SOPs.
The tax department explained that applicants may apply through respective representative associations for new registration of manufacturers for the concessionary tariff rates.
Similarly, the association concerned, after verifying particulars on the prescribed format, may forward the application along-with its element recommendations, duly signed by its chairman, to the Export-oriented Sector Registration Cell (ESRC) of FBR.
The ESRC would then examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer, including declarations in the registration profile etc. as required, and forward the case to the Ministry of Commerce for allowing the concession through respective 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 FBR has mentioned that newly enrolled taxpayers shall be entitled to avail the concession tariff prospectively, while DISCOs and gas companies shall ensure that the taxpayers are active on FBR’s sales tax 1 Active Taxpayers List (ATL) each month before generating the monthly utility bill.
In case the taxpayer is found to be non active on the ATL, standard utility tariff shall apply on the supply of utilities for the relevant period.
Any taxpayer aspiring to avail concessionary utility tariff rates, and who is not registered with the respective sector association, may approach the IR field formation concerned for verification of its business particulars and onward submission of report on the prescribed forum to the ESRC within 15 days of the submission of the application.
The procedure for registration of new entrants in export-oriented sectors shall become applicable with effect from January 2021.
It is pertinent to mention here that FBR has included APTMA, PRGMEA, PHMA, PTEA, PLGMEA, APTPMA, Pakistan Denim Manufacturers & Exporters (PDME), surgical instrument manufacturers and Pakistan Sports Goods Manufacturing & Exporters Association (PSGMEA) in the export oriented sectors association.