20000310

NAYYAR ZUBERI File CBR

Thursday, March 09, 2000

RECORDER REPORT

KARACHI: Members of the Council of Karachi's Industrial Associations (CKIA) has urged General Pervaiz Musharaff, Chief Executive of Pakistan to intervene and direct Central Board of Revenue (CBR) to ask the utility agencies to incorporate the changes required under the rules of imposition of 15 percent general sales tax (GST) on utility bills by CBR, without any charges so that the industrialists could claim its as input on their GST obligations.

A meeting of CKIA was held on Thursday in which representatives of various industrial associations participated and criticized the attitude of utility agencies, particularly KESC and said that these agencies are using the imposition of GST on utility bills as leverage and pressurizing the bulk consumers particularly industrialists to pay security deposit equivalent to two and half months of energy bills which is totally unjustified as this is the requirement of CBR and not of the consumers.

CBR had imposed 15 percent on utility bills with the condition that consumers could claim the same as input on monthly basis subject to the condition that the claimant is registered with sales tax and its registration No is printed on the bills. KESC is demanding huge charges for printing the name and registration noon the utility bills.

The pointed out that in certain cases, the charges of security deposit is in excess of rupees five million and the industries are not in a position to pay this. KESC already, has security deposits and has been providing electricity irrespective of the fact whosoever ids actual consumer.

The participants of the meeting resolved that the industrialists will not succumb to the pressure of utility agencies and that they have demanded that the utility agencies print the name of the actual consumer and sales tax registration no on the utility bills without any charge.