Islamabad, August 13, 2025 — The Federal Board of Revenue (FBR) has rolled out a stringent crackdown on sales taxpayers who obstruct tax monitoring efforts, signaling a major shift in enforcement under the updated Sales Tax Rules 2006.
Under the revised framework, any registered taxpayer who denies access to business premises—including refusal to allow tax officers to inspect stocks, production, or clearances—now faces immediate suspension or blacklisting. This move is backed by Section 21(2) of the Sales Tax Act, and aims to reinforce transparency and compliance across Pakistan’s tax ecosystem.
🔍 Key Enforcement Highlights:
•     Commissioners empowered to suspend taxpayer registration without prior notice in cases of fake invoicing, tax evasion, or fraud.
•     Standardized procedures to ensure uniformity across Large Taxpayer Offices (LTOs) and Regional Tax Offices (RTOs).
•     Public hearings will be held before final action, allowing taxpayers to defend their case.
📌 Grounds for Suspension Include:
•     Business not found at registered address.
•     Refusal to grant access under Sections 40B/40C or failure to furnish records under Sections 25/37.
•     Financial activity exceeding five times declared capital and liabilities.
•     Excessive dealings with suspended entities (over 10% of purchases/supplies or Rs. 50 million).
•     Non-filing of sales tax returns for three months or null filing for six months.
This regulatory tightening comes amid growing concerns over tax fraud and underreporting, and reflects the FBR’s commitment to strengthening oversight and restoring trust in Pakistan’s tax administration.