The Federal Board of Revenue (FBR) has seized the accounts of the Karachi Electric Supply Company (KESC) on charges of embezzlement and not submitting billions in government dues and taxes, Pakistan Today has learnt.
The move comes after a story published on May 31 in Pakistan Today that detailed the KESC not depositing over Rs 32 billion, collected from consumers in lieu of general sales tax and television license fees, into the national exchequer. Both taxes were being collected since 2008 by the KESC, but the Abraaj Capital-led management of the KESC did not deposit the recovered sums into government accounts.
Sources told Pakistan Today that initial investigations were conducted into the matter, and facts of the story ascertained. As the first step of recrimination, the FBR has seized KESC accounts. Further investigations are under way.
Another report claimed that the Large Tax Unit (LTU)-Karachi has seized the accounts of KESC for non-payment of Rs 152 million in lieu of recovery of default surcharge.
The deadline for payment of dues has been expired last month.
A KESC spokesperson, however, said that the coercive measures have been taken against the KESC by serving notices to banks despite the fact that sales tax refunds of more than 1,600 million are pending with the LTU. “This coercive measure has been taken by LTU Karachi without considering the fact that the levy of alleged default surcharge is subjudice before the higher appellate forums,” the spokesperson said. KESC has threatened to stop operations in the city as it claimed the power utility cannot purchase furnace oil if the accounts are seized.
Well done, FBR!
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