ISLAMABAD: The Federal Board of Revenue (FBR) chairman, Rashid Mahmood Langrial, announced that the FBR will freeze the bank accounts of non-filers in the fiscal year 2025-26 to enforce tax compliance. The decision was discussed during a meeting of the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar, which focused on the issue of mandatory sales tax registration for unregistered individuals and businesses.
Langrial explained that non-registered businesses and individuals will first receive formal notices. If they fail to register for sales tax, their bank accounts will be frozen. However, accounts will be unfrozen within two days once compliance is achieved. The FBR highlighted that many businesses, including large factories, file income tax but remain unregistered for sales tax. It was revealed that several unregistered factories in Karachi are conducting billions of rupees worth of sales.
Some committee members, including Usman Ahmed Mela, opposed severe measures like property sealing, considering them excessive. Langrial clarified that such steps target only large-scale manufacturing units, excluding small retailers and cottage industries. Naveed Qamar criticized the increasing pressure on businesses, stating that after cutting electricity and gas, bank accounts are now also being targeted.
Mirza Ikhtiar Baig suggested raising the mandatory registration sales threshold from Rs8 million to Rs10 million due to inflation, to protect small traders. Langrial agreed and added that the new limit will be Rs10 million, with a six-month grace period allowing new registrants to delay sales tax payments. He also noted that about two-thirds of manufacturing units remain unregistered.
