Federal Board of Revenue has imposed section 40-B of Sales Tax Act, 1990 to post staff on business premises of stone crushers at district Sargodha and coal mines at district Khushab. Both sectors are generating huge economic activity in the region by supplying crushed stone and coal throughout the country. However, their share in payment of taxes is dismally negligible.
Special teams have been formed by Mr. Dr. Faheem Mohammad, Chief Commissioner Inland Revenue Regional Tax Office, Sargodha in order to monitor actual production and supplies. A total of 16 teams headed by Deputy Commissioner Inland Revenue, Mr. Ali Saleh Hayat Kalyar and twenty two teams headed by Deputy Commissioner Inland Revenue, Mr. Chaudhary Naeem, have been posted at stone crushing plants and coal mines respectively.
It is very important to mention here that both sectors are not paying the due sales tax for past many years. As per information received from FESCO Authorities stone crushing sector consumed 92 million units of electricity in year 2022-23 which corresponds to estimated production of crush stones valued at Rs. 50 billion. As a result, Rs. 10 billion sales tax is being evaded by this sector. In coal sector, there is significant volume of fake and flying invoices causing millions of rupees loss of revenue to national exchequer.
FBR authorities have taken cognizance of these illegal acts and initiated proceedings against criminal elements to bring them behind bars very soon.
It may be worth mentioning that tax authorities engaged stakeholders through meetings and awareness campaigns to convince them pay taxes voluntarily which unfortunately didn’t prove effective. Despite all odds Federal Board of Revenue is determined to collect due taxes by all legal means available and is set to contribute to development of country through enhanced revenue.
