The Federal Board of Revenue (FBR) has introduced an updated mechanism for collecting additional sales tax from electricity and gas consumers not listed in the Active Taxpayers List (ATL). This move aims to enhance tax compliance and ensure a fair contribution from commercial and industrial users. Scope of Additional Sales Tax As per Rule 158I of the Sales Tax Rules, 2006, this extra tax is applicable to industrial and commercial consumers whose utility bills exceed Pak Rs. 15,000 per month. If a consumer’s name does not appear on the ATL, the Federal Government's prescribed extra tax rate will be levied. Tax Collection Mechanism Under Rule 158J, the FBR has outlined the procedure for implementing this tax: 1. Electricity and gas providers must collect the additional tax from non-ATL industrial and commercial users. 2. The extra tax must be displayed as a distinct line item on bills or invoices issued to consumers. 3. Suppliers are responsible for depositing the collected tax under Section 6 of the Sales Tax Act. Regulations and Conditions Under Rule 158K To streamline the collection and adjustment of this tax, the FBR has set specific conditions: 1. The collected tax cannot be adjusted in the tax returns of either the supplier or consumer and must be fully deposited in the national treasury. 2. Utility suppliers must obtain and verify the Sales Tax Registration Number (STRN) of consumers via the FBR’s official database. 3. The name, address, and registration details of the consumer must align with the records in the Active Taxpayers List. 4. Businesses with multiple locations must ensure all addresses are accurately recorded in their tax registration. 5. Upon verification of a consumer's registration status, suppliers must update their billing systems to exclude the additional tax for registered taxpayers. 6. If a consumer is later removed from the ATL, suppliers must reinstate the extra tax charge in the subsequent billing cycle. Encouraging Compliance With these updated regulations, the FBR seeks to curb tax evasion and incentivize businesses to register and file their taxes. The linkage of utility taxation to ATL status is expected to improve tax compliance and broaden the tax base, benefiting national revenue collection. #taxationpk