The Federal Board of Revenue (FBR) on Wednesday issued new regulations restricting the modification of tax details associated with industrial electricity and gas connections, aiming to curb misuse and strengthen oversight.
In a circular, the tax body directed utility providers not to alter National Tax Numbers (NTNs) or Sales Tax Registration Numbers (STRNs) linked to industrial users without prior written approval from the relevant Commissioner of Inland Revenue.
Under the new Standard Operating Procedure, any registered business seeking to update its NTN or STRN must submit a formal application to the commissioner with jurisdiction over their case. The commissioner may then launch a verification process, including physical inspection of the business premises, to confirm the legitimacy of the request.
Only after completing this process to their satisfaction can the commissioner authorize the relevant electricity distribution company or gas supplier to make the necessary changes.
The FBR stressed that utility providers are now strictly prohibited from making such updates independently. “The move is intended to ensure transparency, prevent misuse of industrial utility connections, and strengthen the tax system,” it said.
The measure aims to help prevent fraudulent practices such as transferring utility bills to unregistered entities or evading taxes under the cover of industrial operations.