ISLAMABAD: The Federal Board of Revenue (FBR) has decided to take action against registered business premises that fail to connect with its monitoring system, issuing a notification for key amendments to the Sales Tax Rules, 2006.
Under the new rules, the relevant businesses will be required to install production monitoring, video surveillance or a digital eye system and connect it with the FBR’s monitoring system. Registered businesses that fail to establish the required connection will face action.
According to the FBR, police assistance may also be sought, if required, to seal business premises, while the notification has laid down the procedure for sealing them.
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Under the rules, an Assistant Commissioner Inland Revenue or an officer of a higher rank will submit a written report to the Commissioner Inland Revenue, on the basis of which proceedings may be initiated. The commissioner will forward the report to the Chief Commissioner after an inquiry, who will issue a written order on whether the business premises should be sealed.
The notification states that the entire business premises or a specific portion of it may be sealed. However, a copy of the order must be provided to the businessperson before the premises are sealed.
According to the FBR, the premises will remain sealed until the monitoring system is connected to the FBR’s system. To have the sealed business reopened, the businessperson will have to pay a fine and install the required monitoring system.
An FBR technical team will be present during the installation of the monitoring system. After the system is installed and connected with the FBR, the commissioner will issue a certificate within three days.
The FBR said the electronic monitoring rules may be extended to more business premises and manufacturers in the future.
