FBR Freezes Banks Accounts of SSGC Over Non-Payment of Taxes

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The Federal Board of Revenue (FBR) through its Large Taxpayers Unit of Karachi has frozen all banks accounts of Sui Southern Gas Company Limited (SSGC) in a bid to recover taxes to the tune of Rs. 26 billion from the company.

According to an official statement, the tax authority has attached various bank accounts of SSGC for the non-payment of General Sales Taxes (GST) which was paid to the company by its customers in their monthly bills along with utility charges.

The default amount of GST has been confirmed by the Appellate Commissioner (Appeal), the statement further stated. However, the authority’s strict action translated into a limited recovery, which is barely Rs. 312 million.

SSGC’s Response

Responding to the action taken by the Federal Board of Revenue (FBR), SSGC termed the action as one taken in haste without consideration of the legal procedures. Salman Siddiqui, the SSGC Spokesman, said the Large Taxpayers Unit has issued notices to banks for freezing accounts before the release of the verdict of the Appellate Tribunal.

He said the GST was imposed on the SSGC on the account of the transfer of regasified liquefied natural gas (RLNG) to Sui Northern Pipeline Gas Limited, which is illogical and unjustified in the view of the company. SSGC has submitted a petition against the move of FBR for recovery of GST in the Sindh High Court through freezing bank accounts. According to SSGC, the court revoked the notices of the Large Taxpayers Unit and ordered FBR to wait for the judgment of the Appellate Tribunal.

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