LAHORE, April 29: Water and Power Development Authority on Tuesday claimed in the Lahore High Court that it was not authorized to determine the levy of sales tax and additional surcharge on the consumed electricity units, as this exercise was the authority of Nepra.

While responding to a petition filed by Jurists Forum seeking withdrawal of sales tax and additional surcharge on electricity charges, Wapda submitted that it was bound to implement the tax rates and additional surcharge as proposed by Nepra, but it did not act independently in this regard. “If Wapda does not follow the proposed tax rates, it would be penalized by Nepra.”

Jurists Forum counsel Tariq Aziz had claimed that electricity worth Rs63 billion was being provided free of cost to its former and serving employees (around 150,000) by Wapda, and to cover the cost of this facility, the power consumers were being charged sales tax and additional surcharge at exorbitant rates. He sought withdrawal of this facility and taxes, claiming that the consumers would have to pay just one-thirds of their current bills after withdrawal.

Wapda counsel Umar Ata Bandial denied the petitioner’s plea on the grounds that the figure of Rs63 billion was miscalculated and inflated, as Wapda was providing electricity to its employees at subsidized rates (within a slab of 300 to 1,000 units), and this facility was costing Wapda 0.5 per cent of its total budget of Rs189 billion.

The provision of this facility fell under the head of operation and maintenance expenses and the amount being spent on this account was within the permissible limits.

To a court query, he submitted that the provision of services at subsidized rates was quite a normal practice in departments like the Pakistan Railways, PIA and the SNGPL. Wapda was no exception, he said.

Denying the petitioner’s argument that Wapda was not making maximum recovery of revenues from all over the country since electricity in FATA was being provided free of cost, Wapda counsel claimed that FATA was not being supplied with the electricity without charges. “Rather the supply is being made at subsidized rates and Wapda’s revenue recovery is maximum throughout the country.”