ISLAMABAD: The Federal Board of Revenue (FBR) will conduct public hearings against sales taxpayers before taking harsh enforcement measures against them including bar on the operation of bank accounts, transfer of immovable property, sealing of business premises and seizure of immovable property.
The sales tax circular issued by the FBR on Monday explained new enforcement measures. In order to encourage sales tax registration, strengthen enforcement against hard to tax persons and promote documentation of the economy, certain enforcement measures have been introduced through the insertion of new sections 14AC, l4AD, and 14AE. These measures include bar on the operation of bank accounts, bar on the transfer of immovable property, sealing of business premises, seizure of immovable property and appointment of a receiver.
However, these enforcement measures shall be carried out in conformity with natural principles of justice and in a sequential manner to avoid undue hardships.
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The provisions of Section 14AE already provide that before taking extreme measures the field formations have to fulfil the following conditions;
(i) A public notice of hearing.
(ii) Hearing to be conducted jointly by concerned representative of the chamber of commerce & trade and concerned officer of Inland Revenue. Ample opportunity of being heard shall be provided to the person, intended to be registered, in the open hearing.
(iii) Such decisions shall be made public by placement on FBR’s website and newspapers.
Copyright Business Recorder, 2025
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