Karachi, September 8, 2025 – The Federal Board of Revenue (FBR) has been vested with wide-ranging powers from the start of tax year 2025-26, enabling it to seize immovable property of individuals or businesses that fail to obtain sales tax registration.
This significant move has been introduced through the Finance Act, 2025, which inserted a new section 14AE into the Sales Tax Act, 1990.
According to officials within the FBR, the new law has been designed to strengthen compliance and ensure that businesses fulfill their legal obligation of registration. Section 14AE specifically authorizes the Chief Commissioner to seal premises, seize movable or immovable property, and even appoint a receiver for managing taxable activities if a person continues to ignore registration requirements.
However, the law also lays out protective measures to prevent arbitrary action. Before seizing any property, the tax authority must issue a public notice and provide an opportunity of hearing through an open court. A committee, consisting of the Chief Commissioner, the relevant Commissioner, and a representative from Chambers of Commerce or Trade Associations, will evaluate the case. Furthermore, any such decision must be made public by placing it on the FBR website and publishing it in newspapers.
An important relief provision has also been included. If the taxpayer completes sales tax registration after such action, the Chief Commissioner is bound to reverse the order within two working days. In addition, those aggrieved by the property seizure or related orders may file a representation before the Board within 30 days.
This measure highlights the seriousness with which FBR is pursuing sales tax registration. Businesses are now strongly advised to secure registration promptly to avoid the risk of property seizure and disruption of operations.
Disclaimer: This news article is for informational purposes only. It summarizes amendments introduced in the Sales Tax Act, 1990 through the Finance Act, 2025. Readers are advised not to treat this as legal or tax advice. For specific guidance regarding sales tax registration, property seizure, or compliance obligations, please consult a qualified tax professional or refer directly to the official notifications of the Federal Board of Revenue (FBR).