LAHORE - With a view to enhancing revenue collection, FBR has announced to bring retailers into tax net and for this purpose the government tax agency has planned to collect sales tax from retailers through electricity bills.

In this connection, the FBR issued SRO 608 (I) /2014, which says that retailers not falling in specified categories will be charged sales tax through their electricity bills.  FBR officials say that person making supplies of electricity to the retailers will be charged sales tax at the rates specified from every retailer having a commercial electricity connection. However, the sales tax will not be charged in some cases where the person making supplies of electricity receives a written order from the Commissioner of Inland Revenue to the effect that the consumer is already paying sales tax through monthly returns.

According to them, the amount of sales tax charged from retailers will be shown separately in the electricity bill or invoice issued by the supplier of electric power. The supplier of power will collect and pay the amount of sales tax from retailers in the manner as prescribed in Chapter III.  It is to be noted that the Federal Board of Revenue has made it mandatory for retailers to install Fiscal Electronic Cash Registers and issue invoices only from these machines to customers.  The provisions of new rules would apply to all persons who make supplies from retail outlets to end consumers, including wholesalers-cum-retailers.