Islamabad, September 15, 2025 – The Federal Board of Revenue (FBR) has officially outlined monetary penalties for individuals and entities that fail to file their sales tax returns within the prescribed deadlines during the tax year 2025-26.
The new enforcement measures are aimed at improving compliance and ensuring timely submission of returns.
According to the FBR’s notification, any registered person who does not furnish a return within the due date will be required to pay a fixed penalty of Rs. 460,000. However, if the return is submitted within ten days after the deadline, the taxpayer will be liable to pay a daily penalty of Rs. 200 for each day of delay. This provision provides some relief for those who may experience short-term delays but still encourages immediate compliance.
In addition, strict penalties have been introduced for digital platforms and service providers. Online marketplaces, payment intermediaries, or courier services that fail to furnish the prescribed monthly statements on time will face serious consequences. For the first instance of default extending to two consecutive months, a penalty of Rs. 300,000 will apply. If the default continues, subsequent violations within one year will attract a heavier penalty of Rs. 1 million for each case.
Tax experts believe these penalties underscore the FBR’s determination to expand documentation and bring digital and traditional businesses under tighter monitoring. The move is also expected to discourage habitual non-filers and create a more transparent taxation environment.