ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a risk-based system to speed up sales tax registration for businesses, with low-risk applicants to be processed within three working days. The measures were notified through Sales Tax General Order No. 20 of 2026.
Under the new framework, all applications submitted through the computerised IRIS portal will undergo risk-based screening. Applicants classified as low-risk will be given priority processing and cleared within three working days, provided their documentation is complete. Field formations have been directed not to demand additional documents unless legally required or specifically flagged by the risk-based system.
To facilitate manufacturers, the FBR has asked sectoral associations under the Federation of Pakistan Chambers of Commerce and Industry to issue pre-registration certificates to their members.
These certificates will confirm that the applicant is engaged in manufacturing, that business premises are identifiable, that the activity matches the relevant sector, and that the applicant’s details correspond with the association’s records. The certificates will be transmitted electronically to the local registration office along with other required documents.
The FBR clarified that these certificates are meant only to expedite verification and do not replace legal requirements or confer any exemptions. Associations will be held accountable if false information is later discovered during physical checks. Local registration offices are required to conduct on-site verification of manufacturers within three working days of receiving an application.
High-risk applications will continue to face stricter scrutiny, including both pre- and post-registration verification. Even applications cleared as low-risk may be reviewed again later if irregularities come to light.
The order also sets out procedural safeguards for incomplete applications. If an application is found deficient, the applicant must be notified within seven days, with a clear explanation of what is missing, what needs correction and the time allowed to address it.
Objections raised by field formations must be specific and tied to a defined legal requirement; vague or general objections are not permitted. Once the missing information is submitted, the application must proceed without requiring the applicant to restart the process.
