ISLAMABAD – In a significant policy shift, the Federal Board of Revenue (FBR) will begin intermittently suspending the bank accounts of unregistered sales tax defaulters for up to three working days starting July 1, 2025, under the amended Finance Bill 2025–26.
The revised legislation eases certain procedures while also arming tax officials with sharper tools to clamp down on individuals and businesses operating outside the sales tax net. The amendment applies specifically to those suspected of supplying taxable goods without proper registration.
Under the newly inserted Section 14AC, if a Commissioner has valid reasons to believe that a person is evading registration, they are required to provide three opportunities for a hearing. If the individual still fails to comply, the Commissioner can direct banks and financial institutions—via written order—to suspend the person’s bank account for three working days.
The law also allows the suspension to be repeated twice, with a one-week interval between each round, significantly tightening the pressure on persistent tax evaders.
The FBR’s move signals a tougher stance against non-compliance, while offering a defined procedure and time window before any punitive banking restrictions are enforced. The aim: to compel registration without immediate long-term financial paralysis.
With these changes taking effect from July, unregistered sellers of taxable goods will find it harder to fly under the radar — and harder still to access their bank funds if they do.
