Karachi, July 21, 2025 – Big changes are now live for Pakistan’s e-commerce sector under the Finance Act, 2025. According to renowned tax expert and High Court Advocate Muhammad Zeeshan Merchant, only tax registered sellers are eligible to make online supplies under the new legal framework.
(more…)Tag: Sales Tax Act 1990
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Merchant Unlocks Sections 37A and 37B of Sales Tax Act
Renowned tax expert Muhammad Zeeshan Merchant, Advocate High Court and former president of Karachi Tax Bar Association (KTBA), demystified the highly talked-about Sections 37A and 37B of the Sales Tax Act, 1990, introduced through the Finance Act, 2025.
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Unpacking Section 37A: Fair Enforcement or Fear Tactic?
Section 37A of the Sales Tax Act, 1990 introduces robust mechanisms to tackle tax fraud through structured inquiries, investigations, and—when warranted—arrests. While some critics have expressed concern over the powers granted under this provision, a deeper analysis reveals that Section 37A is designed to act as a powerful deterrent against tax fraud rather than a tool to harass honest taxpayers.
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Finance Act 2025 –Highlights of Key Changes to Sales Tax
Islamabad, July 1, 2025 – The National Assembly of Pakistan has formally passed the Finance Act 2025, incorporating several pivotal amendments to the Sales Tax Act, 1990, as proposed earlier in the Finance Bill 2025.
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Summary of sales tax amendments through Finance Bill 2025
The Finance Bill 2025 has introduced a series of significant proposals to amend the Sales Tax Act, 1990, aimed at expanding the tax base, enhancing compliance, and curbing tax evasion.
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FBR to Incentivize Whistleblowers in Sales Tax Evasion Cases
Karachi, January 20, 2025 – In a move to combat sales tax evasion and promote transparency, the Federal Board of Revenue (FBR) has announced policy to reward whistleblowers who provide credible information leading to the detection of tax fraud, evasion, or corruption.
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FBR Disallows Sales Tax Refund Claims Filed After One Year
Karachi, January 19, 2025 – The Federal Board of Revenue (FBR) has announced that it will no longer entertain claims for sales tax refunds filed beyond a one-year period. This decision, based on Section 66 of the Sales Tax Act, 1990, emphasizes strict adherence to the stipulated time frame for refund claims.
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FBR to Pay Interest at KIBOR for Delayed Sales Tax Refunds
Karachi, January 18, 2025 – The Federal Board of Revenue (FBR) has confirmed its obligation to pay interest on delayed sales tax refunds at the annual Karachi Interbank Offered Rate (KIBOR).
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Modes of Notice Service under Sales Tax Act
The Sales Tax Act, 1990, clearly outlines the procedures for service of notices, orders, or decisions to taxpayers or other persons under its jurisdiction. These procedures are governed by Section 56 of the Act, which specifies the acceptable modes of service to ensure proper communication and compliance.
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Extensive Tools Empower IR Officers for Tax Recovery
Karachi, January 16, 2025 – Officers of Inland Revenue (IR) have been provided with extensive mechanisms under the Sales Tax Act, 1990, to ensure the recovery of outstanding sales tax arrears. These measures are outlined in Section 48 of the Act, offering a comprehensive framework to address cases of unpaid taxes.
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