Karachi, October 22, 2024 – The Federal Board of Revenue (FBR) has initiated the disconnection of electricity connections for individuals and businesses who have failed to obtain mandatory sales tax registration. This decisive action is part of a broader effort to tighten compliance and curtail revenue losses. On Tuesday, the FBR issued formal directives to chief commissioners of Large Taxpayers Offices (LTOs), Corporate Tax Offices (CTOs), Medium Tax Office (MTO), and Regional Tax Offices (RTOs) to verify the identities of suspected non-compliant persons. These individuals, engaged in taxable activities, have been operating without proper sales tax registration—a violation of the Sales Tax Act, 1990. The FBR’s move comes after identifying 500 individuals and entities with industrial and commercial electricity connections who are believed to be evading sales tax obligations. These electricity consumers are suspected of conducting business transactions subject to taxation but have sidestepped the requirement to register under Section 14 of the Sales Tax Act. According to the FBR, every individual or entity making taxable supplies, including zero-rated supplies, is legally bound to register for sales tax. This obligation ensures transparency in business activities and prevents revenue leakage, critical for sustaining the national exchequer. The list of suspected tax evaders was compiled in collaboration with various Distribution Companies (DISCOs), which provided details of electricity consumers holding industrial and…