Industrialists should be held to same standard of tax compliance as salaried persons: FBR chief

Federal Board of Revenue (FBR) Chairman Rashid Langrial briefed the National Assembly Standing Committee on Finance on Tuesday, revealing that out of 300,000 industrial connections, only 30,000 are registered with the FBR.

These industrial units — including large-scale operations — are utilizing industrial electricity without paying taxes.

Langrial emphasized that individuals with an annual income of PKR 25 million should be paying taxes.

He pointed out the disparity, noting that those with a monthly salary of PKR 50,000 are taxed, and industrialists should be held to the same standard.

The FBR is seeking the authority to suspend the bank accounts of non-compliant industrial units, aiming to impact their business operations.

Officials stated that those who pay a monthly electricity bill of PKR 100 million would be targeted.

A formal notice will be sent in advance, giving these units 15 days to register for sales tax. Following a hearing, industrial unit owners will have the right to appeal.

Committee member Hina Rabbani Khar criticized the proposed measure, calling it a "draconian law" and stressing the need for transparency.

Committee members raised concerns about the impact on salary payments if bank accounts are suspended, arguing that accounts should remain open for this purpose.