FBR Announces Penalties for Non-Compliance with Sales Tax Registration

• The Federal Board of Revenue in Pakistan has imposed a penalty for not registering for sales tax before making taxable supplies
• The penalty is either ten thousand rupees or five percent of the tax amount involved, whichever is greater
• This enforcement is to ensure compliance with the Sales Tax Act of 1990
• Failure to register within sixty days of starting taxable activities will lead to further legal actions
• Possible consequences include up to three years of imprisonment, a fine equal to the tax amount, or both
• The FBR aims to ensure all businesses contribute to the tax system from the start of their operations
• The threat of imprisonment emphasizes the seriousness of complying with tax obligations
• The FBR is committed to enforcing tax regulations and maintaining a fair taxation system in Pakistan
• Businesses are urged to register timely under the Sales Tax Act to avoid penalties and legal issues

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.

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