FBR to suspend bank accounts of unregistered sales tax persons for three days under amended Finance Bill

The Federal Board of Revenue (FBR) will have the authority to suspend the bank accounts of unregistered sales tax persons for three working days under the amended Finance Bill (2025-26) from July 1, 2025.  

The revised law simplifies enforcement against individuals who fail to register under the sales tax system. Under the new provisions, if the Commissioner believes a person is involved in supplying taxable goods without registration, they will be given three opportunities to comply.

If the individual does not register within this time frame, the Commissioner can issue a written order directing financial institutions, including scheduled banks, to temporarily suspend the person’s bank account for three days. 

This suspension can be repeated twice, with a one-week gap between each suspension, further emphasising the government’s push for tax compliance.

The changes aim to strengthen FBR’s ability to target non-registered taxpayers and ensure better adherence to the sales tax laws.