Sales tax exemption on gas, electricity supply to hospitals withdrawn

KARACHI: Federal Board of Revenue has advised Inland Revenue Chief Commissioners to ensure that gas and electricity companies collect sales tax from hospitals as the exemption is withdrawn.

FBR in an order to Inland Revenue Chief Commissioners stated that exemption of sales tax on supply of electricity and natural gas to hospitals earlier available against S. No 52A of Sixth Schedule to the Sales Tax Act 1990 has been withdrawn through Finance Act, 2019.

All Chief Commissioners-IR are advised to direct respective electricity companies and natual gas supply companies to charge standard rate of sales on supplies to hospitals of fifty beds or more.

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