Islamabad, October 7, 2025 – The Federal Board of Revenue (FBR) has clarified that under the Sales Tax Act, 1990, the commissioner of Inland Revenue holds suo moto powers to call for and examine departmental records to ensure compliance and legality of decisions.
According to Section 45A of the Sales Tax Act, both the FBR and the commissioner Inland Revenue are authorized to review any record related to departmental proceedings. The purpose of this authority is to verify the legality and propriety of any order or decision passed by an officer of Inland Revenue.
The FBR further explained that while the commissioner can exercise these powers independently, no order imposing or increasing penalties or tax amounts can be passed without first giving the affected person a fair opportunity to explain their case and be heard.
Additionally, proceedings under this section cannot begin if an appeal under Section 45B or Section 46 is already pending. Moreover, the law restricts such actions from being initiated after five years from the date of the original order or decision.
This provision allows the commissioner to act on their own initiative to ensure transparency and adherence to the law within the tax administration system. The suo moto powers aim to maintain accountability, prevent irregularities, and strengthen oversight within the Inland Revenue operations under the Sales Tax Act.