Karachi, September 19, 2025 – The Federal Board of Revenue (FBR) has reaffirmed its stance on penalizing taxpayers who fail to meet their sales tax obligations for the tax year 2025–26.
Through updated Sales Tax Act, 1990, the FBR has continued monetary penalties to ensure compliance and safeguard government revenues.
As per the official guidelines, any individual or business that fails to deposit the required amount of sales tax within the prescribed time or manner will face financial consequences. The penalty will amount to either Rs10,000 or five percent of the outstanding tax, whichever is higher.
For minor delays, a concessionary provision has been introduced. If the unpaid sales tax is cleared within ten days of the due date, the penalty will be limited to Rs500 per day of delay. Furthermore, no penalty will be charged in cases where a miscalculation occurs for the first time during the tax year.
However, the FBR has made it clear that habitual non-compliance will not be tolerated. If a taxpayer fails to pay even after sixty days of receiving a notice from the Inland Revenue—issued by an officer not below the rank of Assistant Commissioner—the matter can escalate to prosecution. Upon conviction by a Special Judge, the offender may face imprisonment of up to three years, a fine equal to the unpaid tax amount, or both.
The FBR emphasized that these measures are aimed at promoting voluntary compliance, deterring habitual defaulters, and ensuring timely collection of sales tax, which remains a vital component of Pakistan’s revenue system.