Islamabad, Aug 13, 2025: The Federal Board of Revenue (FBR) has rolled out tough enforcement measures, warning that it will suspend sales taxpayers who block tax officers from entering their business premises for monitoring.
Under the updated Sales Tax Rules 2006, any registered taxpayer obstructing officials from inspecting production, stock levels, or clearances at manufacturing units could face immediate suspension or even blacklisting.
As per the revised regulations, if the Commissioner or FBR finds sufficient grounds to act, a unified procedure will be applied across all Large Taxpayer Offices (LTOs) and Regional Tax Offices (RTOs) in accordance with Section 21(2) of the Sales Tax Act.
The rules now empower Commissioners to suspend a taxpayer’s registration instantly through the system—without prior notice—when there’s credible evidence of tax fraud, fake invoicing, or evasion. The suspension will stay in force until a full investigation is completed.
Read More: 14 FBR Officials Suspended in Sugar Scam Probe
To ensure transparency, the FBR has introduced public hearings before any suspension or blacklisting is finalized, giving businesses the right to defend themselves and respond to allegations. Grounds for such action may include:
- Business non-existence at the registered address.
- Denying entry to tax officials under Sections 40B and 40C or failing to submit records under Sections 25 and 37.
- Conducting business activity exceeding five times the sum of declared capital and liabilities.
- Engaging in more than 10% of monthly transactions with already suspended taxpayers, except under certain clauses or where the value exceeds Rs. 50 million.
- Failure to file sales tax returns for three straight months, filing null returns for six months, or committing acts of tax fraud.
With these amendments, the FBR to Suspend Sales Taxpayers policy aims to crack down on non-compliant businesses, safeguard revenue, and promote a fair tax culture nationwide.
