FBR recovers Rs14bln after 'freezing' power supplying companies' accounts

ISLAMABAD: The Federal Board of Revenue (FBR) recovered approximately Rs 14 billion from three electricity companies, after freezing their accounts, ARY News reported citing sources.

According to sources, the Economic Coordination Committee (ECC) meeting, chaired by the Finance Minister, addressed a dispute between the Federal Board of Revenue (FBR) and the Power Division over sales tax collection on electricity supply to Azad Kashmir.

Sources said that FBR freezed accounts of Islamabad Electric Supply Company and recovered Rs 10.5 billion, Rs 2 billion from PESCO and Rs 1.58 billion from GEPCO.

Notices were issued to two companies for Rs 52.76 billion in tax payments including Islamabad Electric Supply Company for Rs 47 billion and Gujranwala Electric Power Company for Rs 5.76 billion, sources added.

Sources said that the Power Division had sought ECC’s help to resolve the dispute, which arised as the FBR refused to exempt Azad Kashmir from sales tax on electricity supply, contrary to an agreement between Power Division, WAPDA, and Azad Kashmir.

The ECC had directed Secretary Power, Secretary Finance, and Chairman FBR to resolve the issue.