The bank accounts of individuals or entities engaged in taxable supplies without registering for sales tax may only be initially suspended for a period of three working days from July 1, 2025, according to the amended Finance Bill (2025–26).
The revised provision, introduced under Section 14AC of the Sales Tax Act, aims to encourage voluntary registration while limiting immediate punitive measures.
The amendment outlines that where the Commissioner of the Federal Board of Revenue (FBR) has reason to believe that a person is supplying taxable goods without proper registration, the individual will be granted three formal opportunities to comply.
If the person fails to register after these notices, the Commissioner is authorized to issue a written directive to banking companies and financial institutions to suspend operations of the concerned bank account for a period of three working days.
The amended bill further clarifies that this suspension can be repeated twice more, each following a one-week interval, if the person remains non-compliant.
The measure represents a calibrated approach to enforcement, intended to bring unregistered sales tax persons into the tax net while offering due process and multiple opportunities for compliance before stricter action is taken. The provision also overrides any conflicting laws currently in force.
