ISLAMABAD: The Federal Board of Revenue (FBR) has issued over 11,000 “nudging notices” to individuals and businesses across the country for discrepancies in their sales tax returns. Failure to address these issues could result in heavy fines, frozen bank accounts, or the sealing of business premises.
According to media reports, the notices were dispatched last month, during ongoing discussions between the government and the business community on tax reforms.
FBR Chairman Rashid Langrial raised concerns over underreporting by registered taxpayers and introduced a modern risk management system that examines tax data from the past five years. In the initial phase, notices were sent from corporate tax offices in Karachi, Lahore, and Islamabad.
The FBR stated that the goal of these notices is to encourage improved compliance and responsible behavior among taxpayers. The recipients have been urged to correct irregularities in their returns, with a warning that non-compliance will be taken seriously.
Officials warned that continued non-compliance could lead to tougher enforcement actions. These may include financial penalties, the posting of FBR officers at business premises, and tax assessments based on the discretionary judgment of the concerned commissioners.
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The FBR, using advanced data analysis tools, cross-checked 2024 sales tax returns with external databases and comparable industry data. The analysis found that many businesses had incorrectly classified taxable sales as either exempt or subject to lower tax rates. In several cases, the reported value addition appeared significantly lower than what would be expected based on the scale of purchases.
The FBR said the ongoing effort has already led to an increase in return filings during July, although a full assessment will be possible after the August 4 deadline.
In addition, some taxpayers submitted unusually large refund claims and excessive credit or debit notes, prompting further warnings of possible enforcement actions.
