The Federal Board of Revenue (FBR) took action against National Transmission and Despatch Company (NTDC) by freezing its account on Wednesday on account of a pending tax liability. However, there was no immediate confirmation about the actual tax liability against the company. Company sources said they are paying tax against all the projects and there was no pending tax on its part. They have further confirmed that the NTDC was not exempted from income tax.

It may be noted that in 2016, the FBR had taken a similar action against the K-Electric for recovery of Rs 677 million as outstanding under the income tax laws. The spokesman of NTDC has termed freezing of company's accounts as an illegal act of the FBR. In a statement, the NTDC spokesman said the FBR has misused its authority. He said the NTDC is a public sector organisation, managing supply of electricity to consumers across the country.

The NTDC is also implementing many projects of national importance, and the freezing of accounts would affect the joints projects of NTDC and China under the China Pakistan Economic Corridor (CPEC). He said freezing of accounts has been challenged in the court of law by the company.

Copyright Business Recorder, 2018