MULTAN: The Federal Board of Revenue (FBR) has initiated a crackdown on individuals and businesses in Multan who have failed to obtain mandatory sales tax registration, with electricity disconnections on the horizon for those non-compliant.
In a recent directive, the FBR has instructed the Chief Commissioner of the Regional Tax Office (RTO) in Multan to identify and verify suspected tax evaders engaged in taxable activities without proper sales tax registration. This initiative aligns with the FBR’s broader strategy to enhance compliance and minimize revenue losses.
The FBR has pinpointed approximately 500 individuals and entities within Multan that hold industrial and commercial electricity connections but lack the required sales tax registration under the Sales Tax Act, 1990. These consumers are suspected of conducting business transactions that fall under taxable supplies, thereby evading their legal obligations.
Every entity making taxable supplies is required to register for sales tax, ensuring transparency and preventing revenue leakage. This crackdown, fueled by data from local Distribution Companies (DISCOs), aims to address significant gaps in compliance.
To facilitate this process, RTO Multan has been tasked with appointing focal persons to coordinate with DISCOs for a thorough verification of the addresses and business activities of these suspected tax evaders. Teams comprising tax officers will be deployed for on-the-ground inspections to assess the eligibility of these consumers for mandatory sales tax registration.
Upon completion of the verification process, the FBR will forward the information of non-compliant consumers to the relevant authorities, who will then proceed with disconnections of electricity supplies as mandated under Section 14AB of the Sales Tax Act, 1990.
This decisive action by the FBR emphasizes its commitment to broadening the tax base and ensuring compliance with tax laws in Pakistan. As this campaign unfolds, businesses and individuals in Multan failing to meet their tax obligations may face severe financial and operational repercussions, marking a significant step in the fight against tax evasion.
