20000310

Industrialists

criticise KESC

demand for

security deposit

RECORDER REPORT

KARACHI: The Karachi Electric Supply Corporation (KESC) came under heavy fire at a meeting of industrialists here on Thursday.

Representatives of various industrial associations, united under the council of Karachi Industrial Associations severely criticised the attitude of KESC, and accused it of using the imposition of GST (General Sales Tax) on bills as leverage to demand security deposits from bank consumers.

The Central Board of Revenue had imposed 15 percent GST on utility bills, and notified that consumers could claim this tax as input cost if the claimant was registered with the Sales Tax Department, and the registration number was printed on the bill.

KESC is demanding a security deposit equal to two and a half months of energy bills before it prints the name and registration number on the bills.

The industrialists say that in some cases, this security deposit amounted to over Rs. 5 million, and was too large an amount to pay. Besides, they said that the printing of registration numbers was the requirement of the CBR, and not the consumers, so there should be no demand for the amount.

The industrialists resolved in Thursday's meeting that they would not pay the amount, and demanded the printing of the name and registration number without any charges.

They also urged the Chief Executive, General Pervez Musharraf to order the CBR to ensure this.