ISLAMABAD: The Federal Board of Revenue (FBR) has sent nearly 11,000 “nudging” notices to companies and individuals, urging them to rectify discrepancies in their latest sales tax returns or face possible penalties, bank account freezes, and business closures.
Issued last month in Karachi, Lahore, and Islamabad, the notices come as authorities push to recover unpaid sales and income taxes. According to FBR Chairman Rashid Langrial, many registered taxpayers are paying far less than their due share. Using a risk management system, the FBR reviewed returns filed over the past five years and flagged anomalies such as unusually high exempt sales, reduced-rate categories, and low value addition compared to purchases.
The notices, described by the FBR as “non-intrusive and legally non-binding,” warn that continued non-compliance could result in strict enforcement measures, including placing tax officials within business premises and issuing best judgment assessments. The agency says its data analysis is fully automated, using benchmarks from similar businesses and jurisdictions.
Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani criticised the move, calling it ill-timed given ongoing talks between traders and the government. He argued that sales patterns vary widely by brand, quality, and pricing, making peer-to-peer comparisons unfair.
Despite the backlash, the FBR claims the nudging campaign has already boosted return filings in July, with a full review expected after the extended August 4 deadline. Some notices also flagged excessive refund claims and an unusually high volume of credit and debit notes, warning taxpayers to address such issues in upcoming returns to avoid punitive action.
In a related move, over 250 tax officers from grades 17 to 22 have been reshuffled, with only top-rated “A” and “B” category officers being posted to key field positions.
