ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a Rs. 1 million penalty for the first violation involving the failure to install or use the electronic system required for tax-related information.
The penalties have been introduced under the Finance Act 2026-27, which requires taxpayers to install and use the electronic system prescribed by the FBR.
Under the new provisions, taxpayers can face financial penalties for failing to comply with the electronic tax system requirements. The penalties also apply to individuals or entities that tamper with, disable, or deliberately avoid using the prescribed system.
The electronic system is designed to store information related to taxpayers’ liabilities and provide authorized access to relevant tax information.
The government aims to strengthen electronic record-keeping and improve the availability of tax-related information through greater use of digital systems.
The measure is part of broader efforts to improve tax administration, enhance compliance, and increase transparency within Pakistan’s taxation system.
Under the new law, the first violation can result in a Rs. 1 million fine, making compliance with the FBR’s electronic system requirements financially significant for taxpayers.
Those who intentionally interfere with the system or avoid using it may also face penalties under the revised provisions.
The new measures are expected to encourage taxpayers to adopt the prescribed electronic system and ensure that tax-related information is properly recorded and accessible to the authorities.
