Islamabad, September 17, 2025 – The Federal Board of Revenue (FBR) has announced strict measures under the Sales Tax Act, 1990, by introducing a defined penalty for individuals or businesses that obstruct tax officials in the course of their duties.
The updated provisions apply from the tax year 2025-26 and are aimed at ensuring full compliance with audit and monitoring procedures.
According to the FBR, obstruction includes denying entry to business premises, registered offices, warehouses, or any other location where sales records are maintained. It also covers refusal to allow inspection of accounts, stocks, or ledgers when demanded under Section 25, 38, 38A, or 40B of the Sales Tax Act.
Officials clarified that any person found guilty of such non-compliance will face a penalty of Rs. 25,000 or 100 percent of the amount of tax involved, whichever is higher. This significant penalty aims to discourage concealment of records and ensure transparency in sales reporting.
In addition to the financial consequences, the law also prescribes criminal liability. Offenders may face imprisonment of up to five years, or a fine equal to the evaded tax, or both, if convicted by a Special Judge. The dual framework of financial penalty and criminal prosecution highlights the seriousness of non-compliance.
Disclaimer: The information on penalties under the Sales Tax Act, 1990 is provided for general awareness. Taxpayers are advised to consult official FBR notifications or professional advisors for precise legal obligations.