The government has fulfilled another condition of the IMF to reduce the revolving debt

Islamabad: The government has fulfilled another condition of the IMF to reduce the revolving debt.

The rules issued by FBR will require electricity distribution companies across the country to issue electricity bills to consumers based on their computerized National Identity Card number instead of meter number or reference number.

According to the details, in the case of tenants, their computerized numbers will also be recorded on the electricity bills, while the distribution companies will submit the KFIR of the defaulters of the electricity bills on a monthly basis.

When the senior officer of the Federal Board of Revenue was contacted about what action the FBR will take to pay the tax dues of these defaulters, he said that these amendments on the condition of the IMF to reduce the revolving credit. In relation to revolving credit, the position of the Energy Division was that because the FBR recovers sales tax on electricity bills, while a large number of customers of electricity distribution companies do not pay their electricity bills and become insolvent, but the FB R recovers the sales tax included in these bill amounts from the electricity distribution companies.

According to the details, due to which there is a double loss in the revenue of the electricity distribution companies, one is that the consumers do not even pay the price of the electricity used due to being insolvent, and then the taxes that are included in it from above are FB. R makes its recovery, similarly, PTV makes its recovery in terms of fees, the entire burden of which falls on the electricity distribution companies, due to which the volume of revolving credit is increasing.

It was suggested to the IMF that instead of recovering the tax on the electricity bills issued to the consumers, recovery of sales tax on the amount of the collected electricity bills by the consumers and the amount of the electricity bills should be recovered. If the bills are in default, FBR and other related institutions should take action against them to recover their dues.

In this regard, according to a document available to Express News, FBR has issued Special Procedure Rules 2023 for the collection and payment of tax on electricity supplied by electricity distribution companies. In which it is stated that the electricity distribution companies will gradually connect the electricity meters across the country to the computerized national identity card number of the customers instead of the reference number or meter number and the customers will be connected to their computerized identity card number and their Electricity bills will be issued on the identity card number only, where buildings, shops, out-lets or any are rented out, then the computerized national identity card number of the property owner will also be recorded there along with the computerized national identity card number of the tenant. So that if the tenant is a defaulter, then a bill will be issued on his identity card and that tenant will be considered as a defaulter and action will be taken against him.

The rules further state that earlier sales tax dues were recovered from the DISCOs on the bills issued by the electricity distribution companies to the consumers. Sales tax will be collected from the consumers on the amount recovered and the consumers who do not pay the electricity bills, the electricity distribution companies will take action against the consumers after fulfilling the legal requirements, their electricity meters will be disconnected and FIRs will be filed. Lists of such defaulting consumers will be provided to the FBR in which the details of these defaulters will be provided and the Federal Board of Revenue (FBR) will collect electricity sales from these defaulters on the amount of electricity consumed by them. Tax Q will take legal action for recovery of dues.

According to the document, the Federal Board of Revenue (FBR) has also introduced a formal format for sending information of defaulters for electricity distribution companies and it is said that according to this format, information and lists of electricity defaulters will be submitted to the FBR. In this format, the name of the defaulter, National Tax Number and Computerized National Identity Card numbers, electricity reference number, full address of the place where the electricity meter is installed and whether the defaulter’s place is rented or privately owned should be sent to The details of the month in which the default is to be given.

The date of disconnection of the meter on the basis of non-payment shall also be recorded as well as the date of encashment of the deposited security, if any legal action or litigation is pending, the legal status thereof shall be intimated to the Tehsildar and Recovery Officer. The date of the memo to be sent for recovery and the report of the tahsildar and recovery officer, the comments of the concerned desks and the details of the amount of sales tax due must also be informed.