FBR to Freeze Bank Accounts of Non-Filers Starting Next Month

The Federal Board of Revenue (FBR) has announced a strict move to freeze the bank accounts of non-filers starting next month. Chairman FBR Rashid Mahmood Langrial made this announcement during a meeting of the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar.

During the session, Langrial explained that formal notices will be sent to individuals and businesses who are not registered for sales tax. If they fail to comply, their bank accounts will be frozen. “However, accounts will be reinstated within two days of compliance,” he assured.

The FBR revealed that many businesses, particularly factories with multiple industrial meters, file income tax returns but remain unregistered for sales tax. In Karachi alone, several unregistered factories are reportedly conducting billions worth of sales.

Some committee members opposed the move. Usman Ahmed Mela objected to sealing properties of non-registered entities, calling it too harsh. Naveed Qamar also criticized the enforcement approach, stating, “First you cut their electricity and gas, now you’re shutting bank accounts too.”

FBR officials explained that many businesses evade taxes by frequently changing locations. Committee member Mirza Ikhtiar Baig suggested small traders should not be targeted and proposed raising the sales registration threshold from Rs8 million to Rs10 million.

The FBR Chairman agreed and added that around two-thirds of manufacturing units are still not registered. He also offered a six-month grace period for new registrants, during which no sales tax would be collected.