FBR can now suspend non-filers’ bank accounts for three days at a time

ISLAMABAD: The Federal Board of Revenue (FBR) will be able to freeze bank accounts of unregistered sales tax defaulters for just three working days at a time, starting from July 1, under changes introduced in the amended Finance Bill 2025-26.

The new rule applies to people or businesses that are supplying taxable goods but have not registered for sales tax. 

Under the updated Section 14AC of the Sales Tax Act, tax officials must first give the unregistered person three chances to appear and register. If the person still refuses, the Commissioner can issue a written order to banks and financial institutions to temporarily suspend their account for three working days. 

This suspension can be repeated twice more, with a gap of one week between each, making it a maximum of three short-term suspensions. 

The move is aimed at pushing non-filers into the tax system while avoiding prolonged disruptions to their banking operations. It also eases earlier rules, which gave wider powers for freezing accounts without a clear time limit.

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