- The Federal Board of Revenue in Karachi has announced severe penalties for failing to deposit sales tax dues, including up to three years in jail
- The Sales Tax Act of 1990 mandates strict fines, penalties, and imprisonment for those who do not remit sales tax on time
- Penalties for non-payment include a fine of ten thousand rupees or five percent of the tax amount due, whichever is higher
- If the sales tax is paid within ten days past the due date, the penalty is reduced to a daily fine of five hundred rupees for each day late
- No penalty for the first miscalculation of sales tax per year, but subsequent failures after a notice lead to harsher penalties
- Failure to pay within sixty days of a notice can result in imprisonment for up to three years, a fine equal to the tax amount, or both
- The FBR aims to improve compliance with sales tax laws and ensure timely payments to avoid legal issues
- Businesses and individuals are urged to meet tax deadlines to prevent severe financial and legal consequences
Source: pkrevenue.com
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.
