FBR to Suspend Taxpayers Denying Premises Access

Islamabad, August 13, 2025, 04:05 PM PKT — The Federal Board of Revenue (FBR) has unveiled a hardline stance, declaring it will suspend or blacklist sales taxpayers who deny tax officers access to business premises for monitoring stocks, production, or clearances, as per the updated Sales Tax Rules 2006, per official announcement. The FBR can suspend registration without prior notice if the Commissioner or Board suspects tax evasion, fake invoices, or fraud, pending further inquiry, aligning Large Taxpayer Offices (LTOs) and Regional Tax Offices (RTOs) under sections 40B and 40C of the Sales Tax Act. Refusal of access or failure to provide records triggers action, alongside discrepancies exceeding five times declared capital and liabilities, excessive dealings with suspended persons, three-month return non-filing, or fraudulent returns.

The FBR promises public hearings before formal action, aiming to enforce compliance. Web context on tax enforcement shows past resistance, while posts found on X reflect concern—some support crackdowns, others fear harassment. Critically, the narrative of “tax integrity” may mask overreach risks—web data hints at prior disputes, and X sentiment suggests distrust in fair application, pointing to potential backlash.