The Federal Board of Revenue (FBR) has implemented a turnover tax on the subsidies provided to utility stores.

As per the provided information, a tax of Rs 60 billion will be levied on the subsidies during the current fiscal year.

According to sources, after treating the subsidy as income, the FBR will get about Rs 1 billion in tax revenue from it.

The FBR collected Rs 4 billion last year after attaching utility retailer accounts. Sources further stated that the FBR and utility outlets have been at odds over the application of taxes on subsidies.

In the finance bill for the current fiscal year, the government has inserted the tax on subsidies. According to sources, loss-making enterprises’ income will be subject to a 1.25% tax.

Prior to now, the Utility Stores Corporation (USC) provided clarification regarding the PM relief package, which consists of five essential kitchen item subsidies.

In a statement, the Utility Stores Corporation spokeswoman stated that the government has received a summary regarding the PM relief package.

Additionally, the representative denied the reports of price increases at Utility Stores and stated that the package is still available to the general public and Benazir Income Support Program recipients as usual.

The Utility Stores Corporation’s statement put an end to rumours that the PM assistance package might expire.

The budget allotted Rs 65 billion for the PM’s and Ramadan packages, of which Rs 10 billion was set aside for the PM’s Ramadan Relief Package and the rest Rs 55 billion for the PM’s Relief Package. This is an important point to make.

Furthermore, the PM’s package included Rs. 35 billion for the current fiscal year.