ISLAMABAD: Following pressure from countrywide traders over the fixed tax regime, the federal government withdrew fixed tax on electricity bills for one year, ARY News reported on Thursday.
The development comes after successful negotiations between government team and traders. Federal Minister for Finance and Revenue Miftah Ismail and Federal Minister for Power Khurram Dastgir Khan hold talks with the business community.
“Govt has decided to withdraw fixed tax regime on electricity bills for one year,” read the statement issued by the Finance Ministry.
Federal Minister for Finance and Revenue Mr Miftah Ismail and Federal Minister for Power Mr. Khurram Dastgir Khan announced that on the demand of traders ,Govt has decided to withdraw fixed tax regime on electricity bills for one year. pic.twitter.com/BmqvSGZWxQ
— Ministry of Finance (@FinMinistryPak) August 4, 2022
The announcement comes hours after the finance ministry rejected the media reports claiming that the government has withdrawn taxes on electricity bills amid strong protest by traders.
Taking to Twitter, the ministry said: “News being released by media channels that Govt has taken back the decision of tax on electricity bills, it is clarified that there is no authenticity in such news and no decision has so far been taken by the govt.”
News being released by media channels that Govt has taken back the decision of tax on electricity bills, it is clarified that there is no authenticity in such news and no decision has so far been taken by the govt. talks are been held with traders on taxes on electricity Bills.
— Ministry of Finance (@FinMinistryPak) August 4, 2022
Earlier, Pakistan Muslim League-Nawaz (PML-N) Vice President Maryam Nawaz urged the withdrawal of fixed sales tax on commercial power bills.
Maryam tweeted on Sunday that she had spoken to Finance Minister Miftah Ismail, who assured her that the solution to traders’ complaints would be found to their complete satisfaction.
Just spoke to @MiftahIsmail who assured me that he will sit with the traders tomorrow & find a solution to their complete satisfaction Insha’Allah.
— Maryam Nawaz Sharif (@MaryamNSharif) July 31, 2022
The traders across the country recorded their protest against the imposition of General Sales Tax (GST) on the current electricity bills.
The local traders in Karachi held a protest on M.A Jinnah Road against the general sales tax (GST) of Rs6,000 per month levied on electricity bills for retailers.
Speaking on the occasion, Karachi traders were of the view that the electricity bills already include sales tax, income tax, fuel adjustment and additional taxes. “Collection of general sales tax from consumers is a total injustice,” they added.
