The Federal Board of Revenue (FBR) has launched an operation to identify persons who are making taxable supplies but are not in the sales tax net. A person who makes taxable supplies but fails to get sales tax registration shall be liable to pay fine and penalties, besides the person is also liable to imprisonment up to three years. Under the Sales Tax Act, 1990, any person who is required to apply for registration under the Act fails to make an application for registration before making taxable supplies: “Such person shall pay a penalty of Rs10,000 or five percent of the amount of tax involved, whichever is higher. Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to amount of tax involved, or with both.” The Section 14 of the Sales Tax Act, 1990 requires a person to get registration under this Act, who is making taxable services. According to the Section 14, every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely: a manufacturer who is not running a cottage industry; a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3; an importer; an exporter who intends to obtain sales tax refund against his zero-rated supplies; a wholesaler, dealer or distributor; and a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act. The Section 14 further says that persons not engaged in making taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration. The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe, said the ruling.