Yes, the Federal Board of Revenue (FBR) has the authority to take stringent actions, including the sale of movable or immovable property, to recover unpaid sales tax from defaulters. This is provided under Rules 72–74 of the Sales Tax Rules, 2002 (updated for 2026). Understanding this process is essential for businesses and individuals to stay compliant.
📌 Rule 72: Stoppage of Clearance and Sealing of Premises
If dues are not recovered under Rule 71, FBR may:
1. Stop Removal of Goods
o Issue STR-17 notice to halt the removal of goods from business premises until dues are fully paid.
2. Seal Business Premises
o If dues remain unpaid, FBR may seal the business premises until full recovery.
3. Accelerated Action
o If the defaulter is likely to conceal, remove, or dispose of property, FBR can ignore the usual time limit and proceed immediately.
4. Public Notice
o FBR may publish the notice in newspapers circulated in the defaulter’s district to ensure transparency and awareness.
📌 Rule 73: Issuance of Demand Note
• If recovery measures fail, FBR issues a demand note (STR-14) to the Recovery Officer.
• The note contains:
o Details of government dues
o Confirmation that all formalities under Section 48 of the Sales Tax Act have been completed
o Assurance that no bar or stay order exists against recovery
📌 Rule 74: Attachment and Sale of Property
• Upon receiving the demand note, the Recovery Officer serves STR-18 notice to the defaulter.
• The defaulter’s movable and immovable property is attached.
• If recovery is not effected, the attached property is sold to recover the outstanding sales tax.
⚡ Features for Users
Check Your Risk Level
• Enter your pending sales tax amount and days overdue to see potential FBR actions.
FAQs
• Q1: Can FBR sell my home or vehicle?
A: Yes, any movable or immovable property may be attached and sold if it helps recover unpaid taxes.
• Q2: How soon can FBR seal my business?
A: Immediately after issuing a notice under STR-17 if dues remain unpaid.
• Q3: Can I stop the sale of my property?
A: Only by paying dues in full or under an approved installment plan.
✅ Tips to Avoid Property Attachment by FBR
1. Pay Taxes on Time – Avoid accumulation of sales tax arrears.
2. Respond to Notices Promptly – STR-17 and STR-18 notices must be acted upon immediately.
3. Use Installment Options – Request payment in installments before property attachment.
4. Keep Accurate Records – Maintain invoices and payment proof to contest errors.
Disclaimer: This article provides general information based on Rules 72–74 of Sales Tax Rules, 2002 (updated 2026). It does not constitute legal or financial advice. Individuals and businesses should consult a qualified tax professional or FBR for guidance. The author and publisher are not responsible for any actions taken based on this content.