Karachi, September 17, 2025 – The Federal Board of Revenue (FBR) has formally announced a new structure of monetary penalties aimed at taxpayers who refuse to provide sales tax records when required by law.
The move is intended to strengthen compliance, improve transparency, and curb tax evasion in the country.
According to FBR officials, the measures are rooted in Section 25 of the Sales Tax Act, 1990, which empowers tax authorities to seek access to records and documents. The prescribed penalties apply when a registered person fails to comply with notices issued by tax officials during the course of audits, inquiries, or verification.
The new framework specifies three stages of enforcement. If a taxpayer fails to produce records after receiving the first notice, a penalty of Rs. 5,000 will be imposed. In case of non-compliance after a second notice, the penalty rises to Rs. 10,000. Persistent denial after a third notice will result in a steep penalty of Rs. 50,000.
Officials explained that these escalating penalties are designed to discourage deliberate obstruction and encourage timely cooperation with tax authorities. By ensuring that businesses share accurate records, the FBR aims to enhance monitoring of sales tax collection and minimize revenue leakages.
The FBR has urged all registered taxpayers to maintain proper documentation and promptly comply with legal requirements to avoid financial losses and potential legal consequences.