Ministry again moves ECC over GST rate on HSFO
After failing to evolve a consensus on 3 percent reduction of GST on High Sulphur Furnace Oil (HSFO) being used by IPPs with Federal Board of Revenue (FBR) despite passage of 16 months, Ministry of Water and Power has again approached the Economic Co-ordination Committee (ECC) of the Cabinet for re-imposition of General Sales Tax (GST) at 17 percent instead of 20 percent on HSFO, well informed sources told Business Recorder.
Many IPPs generate power through using High Sulphur Furnace Oil (HSF) falling under PCT code 2110.1941. Previously, under the Sales Tax Act 1990(STA), HSFO was subject to a levy of 17 percent of GST which is adjustable against the GST payable on the sale of electricity, while any excess balance is recoverable from the FBR under the STA.
Published in Business Recorder, 23rd August, 2017