FBR sets up check posts to monitor goods from tax-exempt areas

FBR Image 01 New

Islamabad, November 21, 2025 — The Federal Board of Revenue (FBR) has set up new check posts to closely monitor the movement of goods coming from tax-exempt regions. The step aims to prevent misuse of tax exemptions and ensure proper documentation of goods entering taxable areas.

According to SRO 2185(I)/2025, issued on November 20, the FBR has established these posts under Section 40D of the Sales Tax Act, 1990. Stakeholders had previously raised concerns regarding irregular movement of goods from exempted regions, prompting the tax authority to introduce stronger monitoring measures.

Newly Established FBR Check Posts

S.No.Check Post NameLocationRoute Covered
1Kohala Bridge Check PostKohala BridgeMuzaffarabad (AJK) towards Murree and Abbottabad
2Nakoder Check PostNakoder (Dina) Mangla RoadMirpur (AJK) towards Jhelum Road

The FBR stated that these posts will help inspect goods and verify accompanying documents as required under Section 40D. Vehicles carrying goods from tax-exempt areas must have all prescribed documents, which Inland Revenue officers are authorized to check.

If any vehicle is found transporting goods without proper documentation, both the goods and the vehicle can be seized. Notices for penalties will be issued within 15 days of such seizures.

Under the law, tax-exempt areas include Azad Jammu and Kashmir, Gilgit-Baltistan, Tribal Areas, Border Sustenance Markets, and any other notified regions.