FBR starts action against taxpayers over integration failure

FBR Pakistan Karachi

Islamabad, July 30, 2025 – The Federal Board of Revenue (FBR) has begun penal proceedings against taxpayers who failed to meet the mandatory integration requirements with its electronic tax system.

This move is part of the government’s broader agenda to enhance tax compliance and transparency across the country.

According to an official communication, the FBR has directed chief commissioners of all Large Taxpayers Offices (LTOs), Regional Tax Offices (RTOs), the Medium Tax Office (MTO), and Corporate Tax Offices (CTOs) to take immediate penal action against those entities that have not completed integration as required.

The FBR, through a notification issued by the Director General of IT & Digital Transformation (IT&DT), instructed field offices to serve penalty notices under Rule 150Q of the Sales Tax Rules, 2006, in conjunction with SRO 709(I)/2025. The rule mandates integration of sales data with the FBR’s central system.

The last dates for electronic integration were extended to July 1, 2025, for corporate registered persons, and to August 1, 2025, for non-corporate registered entities. However, many businesses have still failed to comply.

FBR officials warned that strict enforcement measures will follow, including monetary penalties, disconnection of utility services such as gas and electricity, and possible sealing of business premises for continued non-compliance.

The FBR emphasized that integration is critical to ensuring real-time monitoring of sales and tax compliance. The authority has reiterated its commitment to widen the tax base and enforce documentation of the economy through digital means.