Share this post on

Sales Tax Act Empowers FBR to Disconnect Electricity and Gas for Defaulting Retailers

  • The Sales Tax Act of 1990 grants the FBR the authority to disconnect electricity and gas for retailers who default on their tax obligations.
  • Section 14AB of the Sales Tax Act outlines the provisions empowering the FBR to take such actions.
  • The FBR can discontinue services for non-registered persons and registered but unintegrated retailers.
  • Upon subsequent registration or integration, the FBR will restore gas or electricity connections.
  • This move aims to enhance tax compliance and discourage tax evasion in the retail sector.
  • The FBR is working to streamline tax administration and ensure prompt tax obligations.
  • There are concerns about potential misuse or arbitrary use of this power.
  • The business community is monitoring the implementation and impact of this new authority.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news