Islamabad 4 August: The Federal Board of Revenue (FBR) has issued notices to nearly 11,000 companies and individuals, urging them to correct discrepancies in their recent sales tax returns or face serious consequences, including financial penalties, freezing of bank accounts, and possible business closures.
According to a report by The Express Tribune, the move comes amid ongoing negotiations between the government and the business community, signaling the FBR’s intensified drive to recover unpaid sales and income taxes.
FBR Chairman Rashid Langrial has rolled out a new risk management system to detect inconsistencies in tax returns submitted over the past five years. The system aims to increase compliance among existing taxpayers, many of whom, the chairman said, are contributing significantly less than what they owe.
In the first phase, around 11,000 “nudging” notices were dispatched by corporate tax offices in Karachi, Lahore, and Islamabad. Officials clarified that these notices are non-binding and intended to encourage voluntary compliance without resorting to legal enforcement—yet.
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“Please correct anomalies in your sales tax return. Your failure to act will be viewed as a choice not to comply,” read one of the notices issued in Lahore.
Despite the softer tone, the FBR has made it clear that persistent non-compliance could trigger legal and financial actions, including best judgment assessments by tax commissioners, physical monitoring, and even the sealing of business premises.
