The Federal Board of Revenue (FBR) has decided to punish unregistered businesses by freezing their bank accounts, seizing their property, and disconnecting their electricity and gas meters. In extreme cases, non-compliant businesses may face suspension and fined up to Rs. 1 million, sources told ProPakistani.
Sources said the tax machinery has identified a big tax gap of Rs. 3,400 billion in uncollected sales tax. It has decided to document all stages of business operations, from initial capital to final production.
Manufacturers and wholesalers with an annual turnover exceeding Rs. 250 million will be easy targets of tax officers, along with distributors who have yet to register. Retailers earning more than Rs. 100 million per year won’t be spared either.
FBR will be closely monitoring the production and sales activities of all business sectors to ensure compliance. Those who fail to register will face the full range of restrictions and punishments, sources added.