Karachi, January 9, 2025 – The Federal Board of Revenue (FBR) has issued a stern warning against obstructing its officials during the performance of their duties, emphasizing that such actions could lead to severe penalties, including imprisonment.
The FBR clarified that under the Sales Tax Act, 1990, obstruction of FBR officials is classified as a serious offense. The act provides clear guidelines and punitive measures to deter such behavior and ensure compliance with tax laws.
Key Provisions Under the Law
The FBR outlined the consequences for individuals who deny or obstruct authorized officers from accessing business premises, registered offices, or any location where relevant records are maintained. Obstruction also includes refusing access to stocks, accounts, or records, or failing to present the required documents under Sections 25, 38, 38A, or 40B of the Sales Tax Act.
According to the FBR, individuals found guilty of such acts will face:
• Monetary Penalties: A fine of Rs. 25,000 or 100% of the tax amount involved, whichever is higher.
• Imprisonment: Conviction by a Special Judge could lead to imprisonment for up to five years.
• Additional Fines: An additional fine equal to the tax evaded or attempted to be evaded may also be imposed.
FBR’s Stance on Compliance
The FBR underscored the critical role of its officials in maintaining tax compliance and preventing evasion. “Obstructing FBR officials not only hampers enforcement but also undermines the integrity of Pakistan’s tax system,” the statement said.
The FBR further highlighted the importance of cooperation from businesses and individuals in providing access to premises and records as required under the law. Non-compliance not only leads to punitive actions but also disrupts legitimate business operations.
Encouraging Voluntary Compliance
The FBR reiterated its commitment to improving tax collection and urged taxpayers to fulfill their obligations voluntarily. The board also encouraged businesses to maintain transparent records and ensure timely submission of documents to avoid penalties and legal consequences.
By enforcing these measures, the FBR aims to strengthen compliance and discourage practices that hinder the collection of revenue critical for the country’s development.