The amended Finance Bill (2025-26) has introduced changes to the penalty structure for tax fraud and the non-filing of monthly statements by intermediaries and courier companies collecting payments from online marketplaces.
The new amendments to the Sales Tax Act include relaxed penalties following recommendations from the National Assembly and Senate Standing Committees on Finance.
The Finance Bill stipulates that if any online marketplace, payment intermediary, or courier fails to submit the required monthly statement by the due date, they will be subject to a penalty of Rs300,000 for the first default.Â
If the statement is not furnished for two consecutive months, the penalty will increase to Rs1 million for each subsequent default within a year.
Additionally, any online marketplace or courier that allows unregistered persons to use its services for e-commerce will face a penalty of Rs300,000 for the first violation and Rs1 million for each subsequent violation.
The amended bill also outlines severe penalties for tax fraud. A person convicted of tax fraud under specific clauses of the Sales Tax Act could face imprisonment for up to 10 years, a fine of up to Rs10 million, or both. The convicted person will also be required to pay the tax loss caused, including a 100% penalty and default surcharge.
For less severe cases of tax fraud, the penalty includes imprisonment of up to five years or a fine of up to Rs5 million, along with a similar requirement to repay the tax loss with penalties.
