{"id":66425,"date":"2025-02-24T22:53:55","date_gmt":"2025-02-24T17:53:55","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=66425"},"modified":"2025-02-24T22:53:55","modified_gmt":"2025-02-24T17:53:55","slug":"fto-orders-fbr-to-charge-18-sales-tax-on-solar-net-metering","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/pakistan\/fto-orders-fbr-to-charge-18-sales-tax-on-solar-net-metering\/","title":{"rendered":"FTO orders FBR to charge 18% sales tax on solar net metering"},"content":{"rendered":"

ISLAMABAD: The Federal Tax Ombudsman (FTO) has detected a huge revenue loss of Rs 9.4 billion and has directed the Federal Board of Revenue<\/a> (FBR) to immediately collect 18 percent sales tax from solar net metering electricity consumers in all four provinces.<\/p>\n

As per the details, in its order, the FTO has directed the FBR to implement the collection of sales tax from solar panel consumers by all power distribution companies (DISCOs) on the total price of electricity supplied without any effect of net metering.<\/p>\n

The same position is also taken regarding the prevention of income tax under Section 235 of the Income Tax Ordinance. So far, the FBR has lost revenue of more than billions of rupees. Rs 3 billion due to misapplication of the sales tax law by power companies.<\/p>\n

A complaint was filed under Section 10(1) of the Federal Tax Ombudsman Ordinance 2000 (FTO Ordinance) against NEPRA SRO 892-15 for alleged illegal charging of sales tax on the gross value of electricity supplied to consumers without considering the concept of net metering. The DISCOs issued by the Alternative Energy Development Board (AEDB) are causing undue financial burden and resulting in discrimination against electricity consumers across Pakistan by other DISCOs on the basis of net metering.<\/p>\n

The complainant, an electricity consumer of K-Electric, one of the twelve Distribution Companies (DISCOs) of Pakistan, installed solar panels in accordance with the framework recommended by NEPRA for the Regulation of Alternative and Renewable Energy and Distributed Generation through Net Metering under SR0892(l)\/2015.<\/p>\n

According to the complainant, K-Electric was illegally charging sales tax on the gross price of electricity supplied to the consumers without considering the concept of net metering. In contrast, all other DISCOs are charging sales tax on net electricity units i.e.; net of KWh supplied by the consumers having solar panels as against KWh supplied by the DISCOs. Thus, the complaint The petitioner claimed that the tax treatment on net metering electricity bills is discriminatory as the customers of K-Electric are forced to pay higher electricity bills than the customers of all the other eleven DISCOs.<\/p>\n

The FTO said that in the past, the FBR has clarified that all DISCOs including K-Electric are required to collect sales tax on the gross value of electricity supplied without the effect of net metering.<\/p>\n

The FBR is being deprived of huge loss of legitimate government revenue (Rs. 9.38 billion during FY24) every year due to negligence, inattention, delay, incompetence, incompetence and incompetence in the administration. Furthermore, the complainant failed to establish any maladministration with respect to Section 2(3) of the FTO Ordinance as K. Electric is properly following the statutory provisions of the laws relating to taxation on net metering under the supervision of LTO Karachi except for the discrimination raised by the complainant, the FTO said.<\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: The Federal Tax Ombudsman (FTO) has detected a huge revenue loss of Rs 9.4 billion and has directed the Federal Board of Revenue (FBR) to immediately collect 18 percent sales tax from solar net metering electricity consumers in all four provinces. As per the details, in its order, the FTO has directed the FBR […]<\/p>\n","protected":false},"author":8,"featured_media":49463,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[567,6020,131],"class_list":["post-66425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan","tag-federal-board-of-revenue","tag-federal-tax-ombudsman","tag-fbr"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/66425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=66425"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/66425\/revisions"}],"predecessor-version":[{"id":66426,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/66425\/revisions\/66426"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/49463"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=66425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=66425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=66425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}