The Federal Board of Revenue (FBR) has updated the Sales Tax Rules, 2006, allowing for immediate suspension or blacklisting of sales taxpayers who:
- Deny access to business premises under Sections 40B or 40C
- Refuse to provide records under Sections 25 or 37
- Do not exist at their registered address
- Show disproportionate activity — exceeding five times declared capital and liabilities
- Trade with suspended taxpayers (over 10% of purchases/supplies or Rs. 50 million)
- Fail to file returns for 3 consecutive months, or file null returns for 6 months
- Engage in fake invoicing, tax evasion, or fraud
Commissioners can now suspend a taxpayer’s registration through the system without notice if credible evidence exists.
Suspension will remain until further inquiry. Public hearings will be held before final action, giving taxpayers a chance to respond.
A uniform procedure will be followed across LTOs and RTOs, as per Section 21(2) of the Sales Tax Act.
