FBR cracks the whip on tax evaders in Multan Electricity cuts likely to follow MULTAN: The Federal Board of Revenue is launching a campaign against people and businesses that haven’t registered their business ventures here for obligatory sales tax. Those not coming up to speed may soon have their electricity cut off.
Recently, the FBR directed the Chief Commissioner of RTO, Multan to identify and proceed against around 500 persons, who have consumers’ industrial and commercial electricity connections but do not possess necessary sales tax registration. These persons/establishments are suspected to engage in taxable activities and avoiding their duties.
The Sales Tax Act of 1990 binds all businesses that manufacture taxable supplies to register for sales tax. This step ensures proper records and will avoid loss of government revenue. Gaps in tax compliance are being addressed through data drawn from local electricity companies, commonly known as DISCOs.
For this purpose, the RTO Multan would post specific staff at the DISCOs for verifying the addresses as well as business activities of these potential tax evaders. The tax officers would conduct a field check for determination whether these consumers should be registered for sales tax or not.
The FBR will then report to relevant authorities the non-compliant consumers, who will undertake the disconnections of electricity supplies as provided for in Section 14AB of the Sales Tax Act, 1990.
This is a bold move from the FBR to expand the tax base and enforce compliance of the tax laws in Pakistan. Throughout this drive, business and individuals within Multan who fail to meet their obligations on tax could suffer seriously operationally and financially thus marking one major step towards eradicating tax evasion.
