Strict actions by the Federal Board of Revenue (FBR) against tax-unregistered businesses: The Federal Board of Revenue, or FBR, has announced strict actions against those businesses that are not registered for taxation. They will freeze their bank accounts, seize their properties, and also cut off their electricity and gas services. In severe cases, businesses which are not compliant can even face suspension and as much as Rs. 1 million in fines.
According to sources, the big tax gap of Rs 3,400 billion in uncollected sales tax, says the FBR, now plans to trace each and every step of business operations, from the initial investment to the final production of goods and services.
The operation will target the following producers and sellers of the specified product with an annual turnover exceeding Rs 250 million besides other distributors that have not yet registered themselves with the FBR and the retailers whose annual turnover exceeds Rs 100 million.
According to sources, the FBR will closely monitor the production and sales activities of all business sectors for ensuring that no violations of tax laws are being committed. Failure to register as a business may expose it to relatively harsh penalties like fines, property seizures, or the disconnection of utilities.
The FBR is trying to close the tax gap by making all businesses contribute to the country’s economy through the payment of their due taxes.
