K-Electric issued a statement to counter the news reports that it is wrongfully collecting sales tax from non-retail consumers.
According to its press statement, the utility company said that it did not impose a blanket retail sales tax on all consumers. The statement said that the electric power tariff for the consumers is classified into three broad categories namely, industrial, commercial and residential consumers and there is no separate category exist for retailers.
KE’s spokesperson stated that commercial consumers who are registered with KE as hospitals, charitable organizations, educational institutions, service providers and many other non-retail businesses are not being charged with sales tax. Furthermore, he said that those retail consumers who are already registered with the Federal Board of Revenue (FBR) and are active tax payers are also excluded from this tax.
“After the imposition of sales tax on retailers in July this year (via the Finance Act 2014), we had a series of meetings and discussions with the representatives of FBR in order to the implement the law from mid-September 2014,” said KE’s spokesperson.
“We got in touch with FBR keeping in view the interests of our consumers as well as to get a better understanding of new laws for ourselves,” he added.
According to KE, if a commercial consumer claims that the said tax is not applicable on them, they should, in alignment with sales tax general order No. 66/2014 dated July 21 2014, obtain an Exclusion Order from the tax department and present the same to KE business center in order to have the record updated. Consumers can also contact email@example.com or visit the concerned business center for all tax related matters.
SOURCE: PRESS RELEASE