Wapda chief opposes sales tax

Published February 8, 2002

ISLAMABAD, Feb 7: Wapda chairman Lt-Gen Zulfikar Ali Khan on Thursday urged the government to refrain from charging 15 per cent General Sales Tax on electricity consumption and “be sensitive to public problems”.

Talking to reporters at a prize distribution ceremony of Pakistan Green Task Force, he conceded that if the GST was imposed on Wapda, the brunt would obviously be passed on to consumers in the shape of increased tariff.

“No where in the world, taxes are collected through utilities,” the chairman said, recalling that during the last fiscal year the department had collected Rs24 billion in taxes for the Central Board of Revenue out of which Rs3 billion alone was withholding tax. The amount so collected by Wapda was 25pc of the total collection of the CBR, he added.

He said the governor of State Bank had recently announced that 15pc GST would be imposed on the domestic electricity consumers. “If it is charged, then the prices would definitely go high by 15pc,” he said.

People, he emphasized, should understand that the CBR and not Wapda was responsible for this increase of the electricity tariff.

The chairman referred to a meeting held in November at which President Pervez Musharraf had empowered the finance ministry to deduct Wapda’s dues from the provinces at source. In line with this decision, the chairman said, he had a meeting with the finance minister on Wednesday requesting him to implement the decision soon. Sindh has already assured that it would pay back Rs1.1 billion but Wapda is facing difficulty in collecting the dues from areas like FATA, Balochistan, Azad Kashmir, federal government, the defence sector and the KESC.

Opinion

Editorial

A difficult story
Updated 12 Jun, 2026

A difficult story

Unless productivity becomes the dominant target of economic policy, Pakistan will continue to oscillate between crises and fragile recovery.
Rough waters
12 Jun, 2026

Rough waters

AMONGST the key potential triggers for fresh conflict in South Asia is water. The Indian state is behaving in an...
Politicised football
12 Jun, 2026

Politicised football

ALMOST three-and-half years since Lionel Messi led Argentina to FIFA World Cup glory, the latest edition of...
GB polls’ aftermath
Updated 11 Jun, 2026

GB polls’ aftermath

The new administration must address the region’s issues proactively.
Peace in retreat
11 Jun, 2026

Peace in retreat

THE ceasefire announced in April was supposed to create space for negotiations. Instead, it has been repeatedly...
A few good men
11 Jun, 2026

A few good men

IT was a brave move, no doubt. This Tuesday, in the land of the Afghan Taliban, a few good men decided to take a...