In a decisive move to address tax evasion, the Federal Board of Revenue (FBR) has announced stringent measures against unregistered businesses. These measures include freezing bank accounts, seizing property, and disconnecting electricity and gas meters. In severe cases, non-compliant businesses could face suspension and fines of up to Rs. 1 million, according to sources.

The FBR has identified a significant tax gap of Rs. 3,400 billion in uncollected sales tax, prompting this crackdown. To bridge this gap, the tax authority plans to document all stages of business operations, from initial capital investment to final production.

Manufacturers and wholesalers with an annual turnover exceeding Rs. 250 million are expected to be primary targets for tax officers, along with distributors who have not yet registered. Retailers earning more than Rs. 100 million annually will also be under scrutiny.

The FBR will closely monitor the production and sales activities across all business sectors to ensure compliance. Businesses that fail to register will face the full spectrum of penalties and restrictions, sources added.