LAHORE: Prime Minister Muhammad Shehbaz Sharif on Saturday immediately suspended fixed sales tax collection through the electricity bills and directed for formulation of new mechanism in this regard.
The prime minister also directed for an inquiry over the levy of increased sales tax ratio on shopkeepers/ retailers, in the electricity bills other than the agreed one.
The PM issued these directives while presiding over a meeting in Lahore to review electricity rates and fixed sales tax collection through electricity bills.
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The meeting was attended by Minister for Energy Engineer Khurram Dastagir, Minister for Finance Miftah Ismail, Minister of State for Petroleum Dr Musadik Malik, the Federal Bureau of Revenue (FBR) chairman, relevant federal secretaries and other senior officials.
During the meeting, PM Shehabaz Sharif specially asked for the inclusion of representatives of traders in the consultation process, prior to taking any decision with regard to the collection of taxes from shopkeepers through the electricity bills.
While resolving that the government would take all steps for the economic protection of the poor segments of society, he also directed the relevant authorities and ministries concerned to immediately devise an effective mechanism for slashing the power rates for the poor.
On August 4, the government had announced to withdraw the fixed tax scheme for traders for one year, Bol news channel had reported.
Finance Minister Miftah Ismail and Power Division Minister Khurram Dastagir had announced that on insistence of the Pakistan Muslim League-N leadership, specially Vice President Maryam Nawaz, they were removing the fixed tax on electricity bills for one year. He had said traders had also been demanding the same.
“There will be no fixed tax in the current financial year’s electricity bills as the tax is deferred for one year,” Miftah Ismail had said.
On the other hand, the Finance Division had said that there was no authenticity in such news and no decision had so far been taken by the govt.
However, talks were held with traders and business community on taxes on electricity Bills, a press release issued here by Finance Division had said.
