Electricity consumption under section 235
Electricity consumption under section 235: According to present law rate of collection of tax under section 235 deals with industrial and commercial consumer. Now, the Finance Bill has proposed to change the applicable rate for them and also included the domestic consumer under this section; Revised slabs are as under:
| S.No Gross amount of Bill Proposed Tax rate | ||
| 1 | Gross amount of Bill is upto Rs. 500 | Rs. 0 |
| 2 | Gross amount of Bill exceeds Rs. 500 but does not exceed
Rs. 20,000 |
10% of the amount |
|
3 |
Gross amount of Bill exceeds Rs.20,000 |
Rs. 1950 plus 12% of the amount
exceeding Rs. 20,000 for commercial consumers. Rs. 1950 plus 5% of the amount exceeding Rs. 20,000 for industrial consumers. |
The Finance Bill also proposes to add the taxation of domestic consumer who are not included in the active taxpayer list are now chargeable to tax and rate of tax to be collected on those domestic electricity consumers shall be:
(i) zero percent the amount of monthly bill is less than Rs.25,000; and
(ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/
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