Islamabad: Businesses that fail to integrate with the Federal Board of Revenue’s system within the prescribed timeframe could face fines of up to Rs5 million, while authorities will also have the power to seal business premises under provisions of the Finance Act 2026-27.
Under the Finance Act, businesses required to maintain monitoring, tracking, reporting, sales or production records will have to integrate their operations with the FBR or its designated computerised system.
The law provides penalties for individuals and businesses that fail to complete the required integration within the prescribed period.
A first violation could result in a fine of up to Rs1 million for failing to connect the business with the FBR’s computerised system.
If the violation continues for one month after the first penalty is imposed, a second fine of up to Rs5 million may be levied.
The Finance Act also provides for stronger enforcement measures beyond financial penalties, including the sealing of business premises in cases where the prescribed requirements are not met.
The measures are aimed at strengthening the monitoring and reporting of business transactions, sales and production records through integration with the FBR’s digital systems.
