Islamabad: The Federal Board of Revenue (FBR) has been granted authority to forcibly register individuals who fail to comply with registration requirements under the Sales Tax Act, according to the recently approved Finance Bill 2025.

The bill, set to take effect on July 1, 2025, introduces stringent measures aimed at expanding the tax base.

Under the new provisions, if a person is eligible for registration but does not register voluntarily, an authorized FBR officer or Commissioner Inland Revenue may initiate registration based on their own investigation.

Additionally, the bill introduces two new clauses—14AC and 14AD—to enforce strict penalties against non-filers and those evading registration. Clause 14AC empowers the Commissioner to freeze the bank accounts of unregistered individuals through a written order. The freeze will only be lifted once the individual completes their registration.

These measures are part of the federal government’s broader financial proposals and amendments intended to strengthen tax compliance and widen the tax net.