The Water and Power Development Authority (Wapda) has recommended a formal agreement among stakeholders to direct the sales tax revenue from the Mangla Power Station to the exchequer of Azad Jammu and Kashmir (AJ&K), according to informed sources.
In response to a recent notification establishing a Technical Committee, following a decision made during a Combined Sub-Committee meeting on January 30, 2024, Wapda has advocated for the formulation of recommendations by January 31, 2024. These recommendations are slated for presentation at an upcoming Inter-Ministerial Committee meeting.
During a Technical Committee session held on January 31, 2024, the General Manager Finance (Power) received the minutes of the subsequent meeting on February 01, 2024. These minutes included proposals for Wapda to initiate monthly sales returns filing with the AJ&K Inland Revenue Department from January 2024 onwards. Additionally, it was suggested that Wapda deposit the due sales tax amount linked to the Mangla Power Station into the AJK exchequer. Furthermore, the proposal outlined a system where Wapda would issue supply invoices to CPPA-G, detailing the value of supplies and sales tax amounts for both AJK and Pakistan, thus eliminating the need for separate tax invoices.
However, Wapda underscores the need for thorough procedural considerations before implementing these recommendations, particularly concerning timelines and stakeholder involvement.
Syed Irfan Hussain Rizvi, the General Manager Finance (Power) at Wapda, emphasized the necessity of integrating the modalities for sales tax payment in AJK into a broader agreement among all concerned parties, including Wapda authorities, the Federal Board of Revenue (FBR), AJK Inland Revenue Department, and CPPA-G.
Wapda’s proposal aims to streamline the process of sales tax payment for the Mangla Power Station, ensuring transparency and efficiency in financial transactions related to the facility.
Story by: Mushtaq Ghumman
