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Understanding Joint and Several Liability for Unpaid Sales Tax in 2025–26

The Federal Board of Revenue (FBR) has clarified rules on joint and several liability for unpaid sales tax in the supply chain, as per amendments in the Sales Tax Act, 1990, effective 2025–26. Under Section 8A, both the supplier and recipient of taxable supplies can be held liable if they knew or suspected unpaid taxes. The FBR can exempt certain transactions from these rules. These measures aim to enhance compliance and accountability in tax payments. The article advises consulting the FBR or a tax professional for guidance.

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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