Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Breaking News

FBR raises penalties for fake invoices, digital non-compliance

byCT Report
12/09/2026
in Breaking News, Lahore, Latest News, Slider News
Share on FacebookShare on Twitter

LAHORE: The Federal Board of Revenue (FBR) has increased penalties and introduced new enforcement measures against sales tax registered persons involved in fake invoices, digital non-compliance and violations of production monitoring requirements from July 1, 2026.

According to sales tax budget instructions for 2026-27, penalties under Section 33 have been revised to discourage non-compliance, with the FBR saying existing amounts had not been rationalised for a long period.

You might also like

Cement Sales Rise 7% in September 2026

03/10/2026

Pakistan plans to import 26 LNG cargoes for winter

03/10/2026

A registered person failing to integrate their business or record sales and production through the FBR’s computerised system will face a Rs1 million penalty. Continued non-compliance for one month after the first penalty can result in a second penalty of up to Rs5 million. Business premises may also be sealed.

The FBR has also introduced penalties targeting fake or “flying” invoices. A registered person found, after notice and adjudication, to have issued invoices for fictitious transactions or supplies that did not take place will face a penalty equal to the value of the invoices, including sales tax.

Such persons will also be placed on a publicly accessible “Simulated Invoice Issuers Register”.

Input tax credits claimed against invoices issued by a listed person will be automatically reversed and treated as inadmissible from the date of listing. Removal from the register will require full payment of the penalty and default surcharge, along with satisfactory demonstration of compliance.

Registered persons whose input tax claims cannot be matched with corresponding output tax declared by suppliers will face a penalty equal to 20% of the unmatched input tax, in addition to reversal of the inadmissible credit and payment of default surcharge.

A separate 20% penalty will apply where a taxpayer fails within 60 days to reverse input tax claimed on invoices issued by a person placed on the Simulated Invoice Issuers Register.

The FBR has also expanded enforcement under Section 40C covering production monitoring systems, video analytics and other prescribed monitoring mechanisms.

Taxable goods subject to monitoring requirements cannot be manufactured, removed, transported or supplied without prescribed tax stamps, stickers, labels, barcodes or compliance with the applicable monitoring system.

The amendments also allow authorities to seize and confiscate non-compliant taxable goods as well as the vehicles used to transport them.

Related Stories

Cement Sales Rise 7% in September 2026

byCT Report
03/10/2026

ISLAMABAD: Pakistan’s cement dispatches increased by 5.95% year-on-year to 4.621 million tons in September 2026, driven mainly by stronger domestic...

Pakistan plans to import 26 LNG cargoes for winter

byCT Report
03/10/2026

KARACHI: The government plans to procure 25 to 26 LNG cargoes from November to February to meet increased gas demand...

Islamabad Customs seizes Rs5.41b narcotics consignment near M-2

byCT Report
03/10/2026

ISLAMABAD: Collectorate of Customs Enforcement has seized narcotics and other items worth approximately Rs5.41 billion during an intelligence-based operation near...

Atif Ikram calls for joint strategy to expand share of Asia-Pacific in global textile trade

byCT Report
03/10/2026

KARACHI: President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh called for a joint Asia-Pacific strategy...

Next Post

PAEC launched to unlock potential, raise Pak-Africa trade to $15b by 2030

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.