FBR amends sales tax rules to curb evasion, regulate retailers under IMF condition

The Federal Board of Revenue (FBR) has introduced further amendments to the Sales Tax Rules 2006 to prevent tax evasion and bring retailers under the legal framework, fulfilling another condition of the International Monetary Fund (IMF). Under the new rules, FBR has been granted the authority to seal or unseal business premises.

According to the amendments, the concerned Commissioner of Inland Revenue will impose a penalty for violations, and the business premises will be unsealed upon payment of the fine within the stipulated time.

Additionally, within three days of unsealing the business, a software audit of all Point of Sale (POS) machines will be conducted, and sales recorded during the audit period will also be reviewed.

Read more: FBR plans crack down on taxpayers with transactions exceeding declared income

As per the FBR's official notification, an amendment to Rule 150ZEL has been made, deleting the explanatory clause at the end of sub-rule 5.

Under the new amendment, any shop that remains disconnected from the FBR database for 48 hours will be deemed in violation of the rules.