ISLAMABAD, PAKISTAN: The Federal Board of Revenue (FBR) has tightened its regulatory framework by making it mandatory for all utility companies to seek official approval before altering the National Tax Numbers (NTNs) or Sales Tax Registration Numbers (STRNs) of industrial consumers. The move aims to curb misuse of registration details and ensure stricter compliance with the country’s tax laws.
In its latest Sales Tax Circular No. 3 of 2025, the FBR made it clear that no utility company — including electricity distributors (Discos) and gas providers (Gascos) — is authorized to change the registered tax identification details without prior consent from the Commissioner Inland Revenue. The decision follows reports of irregular changes made through utility channels that allowed some entities to evade scrutiny or manipulate their tax profiles.
The new directive seeks to enhance transparency, traceability, and compliance across the industrial sector. By linking utility connections directly to tax registration records, the FBR aims to plug loopholes that previously enabled tax evasion through informal modifications. Industrial units found altering their NTNs or STRNs without approval could now face penalties or even disconnection of services.
According to the notification, any business seeking to modify its tax details must submit a formal application via the FBR’s online portal and obtain written approval before requesting the change from utility providers. This policy also requires industrial entities to maintain synchronized records between their tax data and utility accounts, ensuring a consistent audit trail.
Tax experts believe the step will strengthen revenue collection and improve documentation but warn it may temporarily slow down legitimate changes related to ownership transfers, mergers, or restructuring. However, the FBR maintains that the measure is essential for upholding financial discipline and closing long-standing loopholes in the industrial tax network.
This story has been reported by PakTribune. All rights reserved.