ISLAMABAD: In the middle of the ongoing record fiscal deficit and low revenue collection, The tax watchdog has served 482,352 notices to non-registered or non-compliant industrial and commercial power consumers across the country.
The non-compliance of tax policies is widening the fiscal deficit. Nine electricity distribution companies, six regional FBR offices along with Regional Tax Offices (RTOs) have issued notices to non-registered facilities across the country.
The notices warned the users that if they fail to enter the tax roll their respective power supplies will be discontinued.
As per the Section 181AA of the Income Tax Ordinance mandates every industrial and commercial connection holder to register with the FBR.
The section further clarifies that the government will not process any application for commercial or industrial connection for electricity or gas unless the applicant registers with the FBR.
The commercial consumers’ compliance with the Board of review’s guidelines remained poor, as only 37146 commercial consumers are registered taxpayers, which makes it roughly 1.47 percent.
As per the guidelines only those commercial consumers who pay more than Rs.1 million in electricity bills can be registered with the Federal Bureau of Revenue.
Registration of industrial units under Income tax is also pitiful, with only 25,871 industrial consumers presently hold National Tax Number (NTN).
