Prime Minister 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 prime minister issued these directives while chairing a meeting to review electricity rates and fixed sales tax collection through electricity bills.
The meeting was attended by Minister for Energy Engineer Khurram Dastagir, Minister for Finance Miftah Ismail, Minister of State for Petroleum Dr Musadik Malik, chairman Federal Bureau of Revenue, relevant federal secretaries and other senior officials.
During the meeting, Prime Minister 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 utility bills.
While resolving that the government would take all steps for the economic protection of the poor segments of society, the prime minister also directed the relevant authorities and ministries concerned to immediately devise an effective mechanism for slashing the power rates for the poor.
Earlier, Pakistan Muslim League-Nawaz (PML-N) Vice President Maryam Nawaz had urged for the withdrawal of fixed sales tax on commercial power bills. Tagging Finance Minister Miftah Ismael in a tweet, she wrote that the trader community was perturbed and complaining about heavy tax imposed on their power bills. She had hoped that Finance Minister Miftah Ismael would find a solution to the problem.
A day later, the government had withdrawn the fixed tax for retailers and shopkeepers imposed through electricity bills for a year. Federal Minister for Finance Miftah Ismail and Minister for Energy Khurram Dastgir had made the announcement to this effect after holding parleys with trading leaders here on Thursday. Minister for Finance Miftah Ismail said that under the directives of Prime Minister Shehbaz Sharif and Mariam Nawaz the government took the decision to defer the imposition of fixed tax for retailers for one year.
After three months, the government would sit with traders to devise feasible system. He said that the previous taxation system would continue for next three months. The minister said that the government abolished tax of Rs3,000 to Rs10,000 per month which was going to be collected through electricity bills keeping in view consumption of power units.