Karachi, July 23, 2025 – In a dramatic move that has rattled the already tense business environment, the Federal Board of Revenue (FBR) has fired off a barrage of Artificial Intelligence (AI)-generated notices targeting sales tax return anomalies spanning the last five years. This sudden strike by the FBR has left taxpayers—especially exporters and manufacturers—reeling in disbelief.
Thousands of businesses registered under the Sales Tax Act, 1990 woke up to a surprise on July 23: AI-generated notices exposing inconsistencies in their sales tax filings from 2019 to 2024. This latest maneuver by the FBR has been dubbed nothing short of “tax terrorism” by critics, who argue that it amounts to open harassment of the business class.
The timing of this development could not be more provocative. Just days ago, on July 19, the business community observed a countrywide strike protesting controversial sales tax clauses introduced through the Finance Act, 2025. With tensions still simmering, the FBR has reignited the firestorm by unleashing a fresh wave of notices—this time courtesy of cutting-edge AI algorithms.
A sample notice warns:
“The FBR uses advanced data analysis techniques to scrutinize tax returns and benchmark them against industry peers. The system operates without human involvement and performs ongoing surveillance to ensure compliance.”
While the FBR claims these are merely cautionary messages urging future compliance, the fine print reveals a far grimmer reality. If taxpayers fail to address these anomalies, they could face:
• Hefty financial penalties
• Invasive FBR monitoring within business premises
• Aggressive best judgment assessments
• Freezing of bank accounts or sealing of operations
• Selection for detailed audit scrutiny
Tax experts warn that this digital crackdown could cripple already stressed enterprises. The FBR’s insistence that these notices are routine fails to convince a business community already burdened by overregulation and economic uncertainty.
In a climate of growing distrust, the FBR’s latest AI experiment may have just opened a new front in its battle with taxpayers—one that could have serious economic fallout.