FBR sales tax suspension policy just got stricter in 2025, and if you’re a registered taxpayer, you really need to pay attention. The Federal Board of Revenue (FBR) has expanded the scope of its sales tax suspension under fresh amendments to the Sales Tax Rules 2006. These changes target non-compliant behavior and aim to improve tax transparency.
What Triggers FBR Sales Tax Suspension in 2025?
FBR sales tax suspension can now be enforced under several new conditions. Key reasons include refusal to allow business premises inspections under Sections 40B and 40C, and failure to provide tax records demanded under Sections 25 and 37. That’s not all – suspension may also apply if a business shows disproportionate turnover, like when it’s five times more than declared capital and liabilities.
Transactions with already suspended businesses, especially if they exceed 10% of total purchases/supplies or go beyond Rs50 million, are also grounds for suspension. Other red flags include non-filing of sales tax returns, not filing for three consecutive months, or submitting zero activity (null filings) for six straight months.
FBR’s Focus on Tax Fraud and Revocation Timeline
Another big change in the FBR sales tax suspension policy is the clear definition of tax fraud. It’s now directly tied to Section 2(37) of the Sales Tax Act, 1990. If tax fraud activity is detected, suspension is imminent.
Once a taxpayer responds to the suspension notice, the FBR is required to revoke or maintain the suspension within 30 days – giving a defined timeline to avoid unnecessary delays.
 has expanded the scope of its sales tax suspension under fresh amendments to the Sales Tax Rules 2006. These changes target non-compliant behavior and aim to improve tax transparency.){kind=link}