FBR warns unregistered industrial, commercial electricity consumers of imprisonment

KARACHI: Federal Board of Revenue (FBR) has issued notices to unregistered commercial and industrial electricity connection holders to file their returns of incomes and sales otherwise from July 01 the tax authorities would initiate legal action that may lead to imprisonment.

Large Taxpayers Unit (LTU) II Karachi issued notices to electricity connection holders of commercial and industrial, stating: “as per data available with FBR you are an Industrial / commercial consumer of electricity, meaning thereby electricity is being used for business purpose.”

It is brought to your knowledge that every person engaged in making taxable supplies in Pakistan is liable to be registered as warranted under section 14 of the Sales Tax Act, 1990.

The data further shows that you have not obtained Sales Tax Registration.

The FBR in its strive to broaden the tax base, intends to register all those persons who are liable to be registered under Sales Tax Act, 1990 or Federal Excise Act, 2005, or the persons earning taxable income and liable to file return under Income Tax Ordinance, 2001 but who have failed to do so.

In order to facilitate the taxpayers in declaring their undeclared income, sales, assets, etc. A scheme has been introduced by Govt of Pakistan /Federal Board of Revenue which provides for declaration of such income, sales, assets, etc by 30th June, 2019 at a very concessionary rate.

“You may avail the benefit of this last opportunity to declare income, sales, assets etc at nominal rates and get registered / file return, if you have not done so,” according to a notice.

After 30th June, 2019 all those persons who are liable to be registered and pay sales tax/ federal excise duty, or liable to file income tax return, if fail to do so, may compulsorily be registered made to file return and duties and taxes would be recovered along with default surcharge and penalty which may also entail prosecution proceedings leading to imprisonment.

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