BR100 Increased By (0.75%)
BR30 Increased By (0.57%)
KSE100 Increased By (0.62%)
KSE30 Increased By (0.61%)
AGHA 7.80 Increased By ▲ 0.05 (0.65%)
BECO 5.19 No Change ▼ 0.00 (0%)
BML 57.60 Decreased By ▼ -1.06 (-1.81%)
BOP 34.27 Increased By ▲ 0.58 (1.72%)
CNERGY 10.89 Increased By ▲ 0.28 (2.64%)
CSIL 5.43 Increased By ▲ 0.13 (2.45%)
FCCL 54.85 Increased By ▲ 1.11 (2.07%)
FFL 16.71 Increased By ▲ 0.25 (1.52%)
FNEL 1.23 Increased By ▲ 0.01 (0.82%)
KEL 7.39 Increased By ▲ 0.11 (1.51%)
KOSM 5.77 Increased By ▲ 0.13 (2.3%)
LOTCHEM 29.76 Increased By ▲ 0.11 (0.37%)
MLCF 95.97 Decreased By ▼ -0.39 (-0.4%)
NBP 204.85 Increased By ▲ 1.32 (0.65%)
NCPL 57.71 Increased By ▲ 0.86 (1.51%)
NPL 69.22 Increased By ▲ 1.91 (2.84%)
OGDC 318.40 Increased By ▲ 0.18 (0.06%)
PACE 10.80 Increased By ▲ 0.17 (1.6%)
PAEL 43.10 Increased By ▲ 1.33 (3.18%)
PIBTL 16.89 Increased By ▲ 0.08 (0.48%)
PPL 221.31 Increased By ▲ 1.14 (0.52%)
PRL 51.90 Increased By ▲ 2.85 (5.81%)
PTC 70.90 Increased By ▲ 0.89 (1.27%)
SSGC 29.09 Decreased By ▼ -0.05 (-0.17%)
TBL 9.95 Increased By ▲ 0.18 (1.84%)
TELE 8.86 Increased By ▲ 0.04 (0.45%)
TPL 17.70 Increased By ▲ 0.53 (3.09%)
TPLP 12.90 Increased By ▲ 0.39 (3.12%)
TREET 22.80 Increased By ▲ 0.21 (0.93%)
TRG 59.80 Decreased By ▼ -0.42 (-0.7%)
Print Print edition: 2026-05-27

To get extra revenue: FBR purposely declaring ST registrations as ‘inactive’: experts

Published Updated

ISLAMABAD: Tax experts have alleged that the Federal Board of Revenue (FBR) is deliberately declaring the sales tax registrations as inactive to generate additional revenue through the application of “extra sales tax.”

Serious allegations of maladministration, administrative excess, and willful neglect have been levelled by the tax advisers.

Waheed Shahzad Butt, who is pursuing this case, accused that the FBR officials have been unlawfully blocking the filing of sales tax returns as a mechanism to coerce inflated tax payments (Extra Sales Tax), raising urgent questions about institutional accountability and the rule of law within Pakistan’s apex revenue authority.

READ ALSO: FBR revises de-registration procedure of ST registration

According to the details, a company filed its monthly sales tax return for December 2025 provisionally through the FBR web portal. Upon submission, the return was automatically locked by the FBR system owing to a negative figure appearing in Annexure H-1, a technical anomaly arising from an incomplete annexure submission at the time of provisional filing.

The resolution of such a system-generated lock requires the administrative intervention of competent FBR officials, an action that, the taxpayer contends, was repeatedly sought but never delivered.

The failure to unlock the December 2025 return triggered a cascading effect, the returns for January 2026 onward also remained pending. Consequently, the FBR system automatically rendered the company’s sales tax registration “Inactive”, a status that carries serious commercial and legal consequences for any registered business operating in Pakistan’s formal economy, he maintained.

Waheed added that a formal written application was addressed to the Secretary (ST-Operations). This was followed by multiple personal visits to FBR headquarters, including documented visits. On each occasion, relevant officials were met in person. On each occasion, no corrective action was taken and no written response was issued.

Copyright Business Recorder, 2026

Comments

200 characters remaining