LTU issues notices to banks for freezing KESC’s accounts
FBR seeks recovery of default surcharge worth Rs152 million.
KARACHI:
The Federal Board of Revenue (FBR) Large Taxpayers Unit ( LTU) has issued notices to the Karachi Electric Supply Company (KESC) for settling all outstanding dues worth Rs152 million.
The LTU has ordered freezing KESC’s bank accounts in order to recover the money. This move has caused KESC to claim that FBR is itself a defaulter to the utility, as the earlier has yet to settle Rs1.6 billion against outstanding general sales tax.
In a statement issued on Tuesday, KESC said that the LTU Karachi had taken coercive measures against KESC for recovering alleged default surcharge of Rs152 million by serving notices to banks.
Despite the fact that sales tax refunds greater than Rs1,600 million were pending with LTU Karachi, read the statement. The coercive measures had been taken by LTU Karachi, without considering that taxing the alleged default surcharge on KESC is subjudice, to the higher appellate forums.
The action taken by LTU Karachi is entirely unjust and against the natural justice, read the statement. According to the statement, such a move by LTU Karachi for recovering alleged default surcharge, would lead to an end to KESC’s operations.
It said that LTU’s steps were tantamount to aggravate ongoing load shedding, which in turn would negatively affect people in the city, because KESC will be unable to obtain furnace oil to run its electric power generation plants. FBR’s comments could not be obtained.
Published in The Express Tribune, June 29th, 2011.
The Federal Board of Revenue (FBR) Large Taxpayers Unit ( LTU) has issued notices to the Karachi Electric Supply Company (KESC) for settling all outstanding dues worth Rs152 million.
The LTU has ordered freezing KESC’s bank accounts in order to recover the money. This move has caused KESC to claim that FBR is itself a defaulter to the utility, as the earlier has yet to settle Rs1.6 billion against outstanding general sales tax.
In a statement issued on Tuesday, KESC said that the LTU Karachi had taken coercive measures against KESC for recovering alleged default surcharge of Rs152 million by serving notices to banks.
Despite the fact that sales tax refunds greater than Rs1,600 million were pending with LTU Karachi, read the statement. The coercive measures had been taken by LTU Karachi, without considering that taxing the alleged default surcharge on KESC is subjudice, to the higher appellate forums.
The action taken by LTU Karachi is entirely unjust and against the natural justice, read the statement. According to the statement, such a move by LTU Karachi for recovering alleged default surcharge, would lead to an end to KESC’s operations.
It said that LTU’s steps were tantamount to aggravate ongoing load shedding, which in turn would negatively affect people in the city, because KESC will be unable to obtain furnace oil to run its electric power generation plants. FBR’s comments could not be obtained.
Published in The Express Tribune, June 29th, 2011.