- Government empowers FBR to target unregistered sales tax evaders’ bank accounts
- New powers granted under amended Finance Bill 2025-26
- Effective from July 1, 2025, affecting individuals and businesses outside the sales tax net
- FBR can direct banks to suspend accounts of unregistered sales tax persons
- Action initiated when there is reason to believe taxable supply is unregistered
- Evaders given three chances to register voluntarily before account suspension
- Account suspension lasts three days, can be repeated twice with one-week intervals
- Aims to push unregistered traders into the formal tax system
- Strategy is reformative, not just punitive, to encourage compliance
- Government seeks to broaden tax base and increase revenue collection
- Unregistered businesses face real consequences if not compliant
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.
