ISLAMABAD: The Federal Government has removed sale taxes on bulk purchases of electricity by the Punjab Industrial Estate Development and Management Company (PIEDMC), Lahore, according to a notification from the Federal Board of Revenue (FBR).
According to the order issued by the FBR, electricity purchased by the PIEDMC, in bulk, from Lahore Electric Supply Company (Lesco) and supplied to sales tax registered industrial units in the Sundar Industrial Estate, will have a sales tax rate of zero per cent.
However, in order to avail this exemption, it is imperative that the electricity connection is in the name of the person registered for sales tax and the electricity bill is addressed to him. The electricity can then be used for the production of over a hundred products including textiles, carpets, sports and surgical goods.
Published in the Express Tribune, October 5th, 2010.