Finance Bill 2025: Comprehensive Sales Tax Overhaul Targeting Compliance, Digital Commerce, and Enforcement

The Finance Bill 2025 proposes amendments to the Sales Tax Act, 1990, to expand the tax base and enhance compliance.
Amendments will take effect from July 1, 2025, for tax year 2026.
A cargo tracking system is proposed to reduce sales tax evasion.
Chilling charges for beverages, mineral water, and juices will be standardized at a 5 percent rate.
Retail price for imported goods must be at least 130 percent of customs-assessed value.
E-commerce regulations will hold payment intermediaries and courier services responsible for sales tax collection.
FBR will control input tax adjustments using risk management data.
Non-registered entities face restrictions to compel sales tax registration.
Sales tax exemptions for tribal areas and solar panels will be phased out.
A two-tier appellate mechanism will be reinstated for dispute resolution.
Chief Commissioner of Inland Revenue will have oversight on audit firms.
Procedures for inquiries and investigations by Inland Revenue will be strengthened.

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.