ISLAMABAD: In a move to enhance compliance and streamline procedures, the Federal Board of Revenue (FBR) has introduced key amendments to the Sales Tax Rules, 2006 vide S.R.O. 164(I) 2025 on 17 February 2025, today.
This comes in exercise of powers granted by various sections of the Sales Tax Act, 1990, with a focus on strengthening enforcement mechanisms and ensuring transparency in tax reporting.
A technical amendment has been made in Rule 150ZEL, specifically in sub-rule (5). The colon at the end of the rule has been replaced with a full stop, and the proviso has been omitted. This change aligns the rule with updated operational requirements.
In Rule 150ZEO, sub-rule (4) has been revised to redefine the conditions under which a registered person may face penalties for issuing unverified invoices. The new text replaces previous conditions with more specific language, addressing situations where invoices are unverified, the store disconnects from the FBR database, or offline invoices are not entered into the system within 24 hours.
Sub-rule (5) sees a shift in the language used, removing the requirement for written orders for sealing business premises and substituting it with the ability to simply allow or disallow the sealing. Additionally, a new sub-rule (8) has been added, allowing for the sealing of business premises in case of any violation by a registered person.
Rule 150ZEP, which deals with the application of penalties, now specifies that the expression "sub-section (9A)" will be substituted with "section 3(9A)" to maintain consistency across the regulations.
Rule 150ZEQ outlines a revised procedure for de-sealing business premises, particularly for integrated Tier-1 retailers. Key procedures include the imposition of a penalty by the Commissioner Inland Revenue, the issuance of a de-sealing order within 24 hours upon penalty payment, and a mandatory software audit for POS machines at all branches within three working days after de-sealing. In cases of non-compliance, business premises will be re-sealed.
These changes are aimed at increasing accountability and improving the overall integrity of the sales tax system. The Federal Board of Revenue has emphasized the importance of adherence to these updated rules to avoid penalties and ensure smooth business operations. The FBR’s move reflects its ongoing commitment to enhancing tax compliance while ensuring fair and transparent practices across the retail sector.
