Bank accounts of tax evaders to face 3-day suspension from July 1

ISLAMABAD: In a major development, the bank account of any unregistered sales tax person (tax evader) can only be initially suspended for a period of three days from July 1, 2025.

The amended Finance Bill (2025-26) has relaxed sales tax law for suspension of bank accounts of unregistered sales tax persons not ready to come into the sales tax net from July 1, 2025.

According to the amended Finance Bill (2025-26), the Federal Board of Revenue (FBR) has simplified things for barring operations of bank accounts of unregistered sales tax persons.

Taxmen get more powers to target unregistered taxpayers

Under revised Section 14AC (bar on operations of bank accounts), this section shall apply where the Commissioner has reasons to believe that a person is engaged in supply of taxable goods without having registration under this Act.

The Commissioner has provided three consecutive opportunities of being heard to the person to obtain registration under this Act.

In case the person failed to obtain registration, notwithstanding anything contained in this Act or any other law for the time being in force, the Commissioner shall have the powers to direct banking companies, scheduled banks and other financial institutions, through an order in writing, to intermittently suspend the operation of the bank account of such any person for three working days.

The Commissioner shall repeat suspension specified in sub-section (2), for two more times with an interval of one week between the suspensions, says amended Finance Bill 2025.

Copyright Business Recorder, 2025