FBR deploys taxmen on leading solar cos' premises
KARACHI: The Federal Board of Revenue (FBR) has tightened the noose around solar energy sector, deploying tax officials in the premises of country's leading solar energy companies to monitor sales record and plug revenue leakage under section 40-B of the Sales Tax Act 1990.
As an intensified effort to ensure compliance in country's growing renewable energy sector, the FBR has given a go-ahead to the Chief Commissioner Inland Revenue, Corporate Tax Office Karachi to station its officers at the premises of top solar energy companies for a period of 30 days, the letter said.
The monitoring exercise, under section 40-B of the Sales Tax Act 1990, has initially commenced against four prominent solar companies operating in Karachi.
Sales Tax cut on solar panels import: Rs20bn revenue hit expected
Sources claimed that these companies have reportedly been engaging in sales suppression to evade sales tax obligations. Therefore, the deployment is part of a targeted effort to verify it and ensure proper tax compliance, they said.
'The officers will monitor the sales of taxable goods and stock positions of these solar companies under section 40B of the Sales Tax Act 1990, which empowers the tax office to post officials at business premises to ensure compliance with tax regulations and prevent revenue leakage,' source said.
The solar energy sector has experienced remarkable growth in Pakistan in recent years as the country is pursuing energy diversification strategies to reduce costly energy imports and address persistent power related issues, sources said.
However, this rapid expansion has also raised concerns about potential revenue losses from non-compliance, they added.
Furthermore, they said the 30-day monitoring period would allow FBR officials to conduct real-time oversight of business operations, sales transactions, and inventory management, adding that the monitoring exercise against these companies, which is expected to conclude within 30-day timeframe, may be expanded to other high-growth sectors to meet revenue targets.
Copyright Business Recorder, 2025
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