Islamabad, September 15, 2025 – The Federal Board of Revenue (FBR) has announced new penalties for taxpayers who fail to comply with requirements regarding the issuance of sales tax invoice during the tax year 2025-26.
The move is part of FBR’s broader effort to strengthen documentation, discourage tax evasion, and enhance transparency in business transactions.
According to the updated provisions, any registered person who fails to issue an invoice when it is legally required will be subject to financial consequences. The prescribed penalty in such cases will be either Rs. 5,000 or three percent of the amount of tax involved, whichever is higher. Tax officials believe this step will ensure that buyers and sellers maintain proper records of every taxable supply.
The FBR has also imposed strict conditions against misuse of the system. If a person un-authorizedly issues an invoice showing a specified amount of sales tax, without being entitled to do so, they will face a heavier penalty. In such cases, the fine will be Rs. 10,000 or five percent of the tax involved, whichever is greater. This provision directly targets fraudulent practices where fake invoices are used to claim undue input tax or refunds.
Experts note that these measures reflect FBR’s determination to modernize tax administration and integrate technology-driven monitoring. By enforcing strict rules, the government aims to reduce revenue leakages and promote a culture of compliance among businesses.