20000128

Name, address change KESC demands Rs 3,500 per kw security deposit

from exporters

RECORDER REPORT

KARACHI: The KESC is demanding security deposit at the rate of Rs. 3,500 per kw from exporters who wish to have the name and address on electricity bill change for the sake of claiming refund of tax on utilities.

Bilal Mulla, the Chairman of the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) South Zone said in a statement that many exporters had approached the KESC for change of name and address on the utility bills but the billing department was demanding security deposit. He pointed out that if an exporter-cum-manufacturer was consuming 50 kw he would have to pay a lot of money for having his name and address of the factory on the bills.

He urged the Government to direct the KESC to exempt exporters who were not changing the premises but only wanted the bill in their name from the security deposit to meet the requirements of Sales Tax Act.

Prgmea had earlier appealed to its members to approach KESC to get their names and addresses on the electricity bills which will enable them to obtain refund of tax on inputs.

Sales tax on electricity and natural gas has been levied with effect from August 16, 1999. The electricity and gas bills issued by the concerned departments will be treated as the sales tax invoice under section 23 of the Sales Tax Act provided they are issued in the name of a Sales Tax registered person. The amount of tax shown in the bill and paid by the consumer during a tax period shall constitute the input tax which will be subtracted from the actual tax liability.