KARACHI   -  To promote and incentivise renewable energy in line with the present government’s policy, the Alternative Energy Development Board (AEDB) has supported a proposal seeking amendments to the Sales Tax Act for applying General Sales Tax (GST) on net billing for the distributed generation facilities in Karachi.

AEDB CEO Shah Jahan Mirza has urged the chairman of the Federal Board of Revenue (FBR) in a letter for considering the proposal to amend the Sales Tax Act during the upcoming Federal Budget, said a news statement on Sunday. He said it has been highlighted by the consumers of K-Electric that the power utility is charging GST to such consumers on the basis of gross units supplied to the consumers instead of the net units supplied citing that the Sales Tax Act does not contain any provisions for netting.

The AEDB chairman referred to an amendment to the National Electric Power Regulatory Authority (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations 2015 made vide SRO on September 13th, 2018.