The Federal Board of Revenue (FBR) has decided to take action against registered businesses that fail to connect with its FBR monitoring system. The move follows amendments to the Sales Tax Rules 2006 aimed at strengthening electronic monitoring of businesses.
The FBR has issued a notification outlining the new requirements. Under the amended rules, registered businesses may be required to install production monitoring systems, video surveillance or digital imaging systems and connect them with the FBR’s monitoring network.
According to the notification, businesses that do not comply with the monitoring requirements could face sealing action. The relevant Commissioner Inland Revenue can initiate proceedings based on a report submitted by an Assistant Commissioner or an officer of equivalent or higher rank.
The report will be examined by the Commissioner, who will then submit findings to the Chief Commissioner. The Chief Commissioner will issue a written order on whether the business should be sealed. Authorities may seal the entire premises or only a specific section, depending on the circumstances.
Before sealing the premises, the business operator will be provided with a copy of the relevant order. The FBR monitoring system must then be connected before the sealed premises can be reopened. Businesses will also have to pay the applicable penalty and complete the required installation process.
The notification further states that an FBR technical team will be present when the monitoring system is installed. After installation and successful connection, the Commissioner will issue a certificate within three days, according to the notification.
The FBR said the electronic monitoring framework could be extended to additional businesses and manufacturers in the future. The amendments are intended to expand digital oversight and ensure that registered businesses comply with the monitoring requirements prescribed by the tax authority.
