From July 1, 2025, the Federal Board of Revenue (FBR) will implement a new measure to curb tax evasion by unregistered sales tax individuals. Under the amended Finance Bill 2025-26, the FBR will have the authority to suspend the bank accounts of those involved in taxable supplies without proper registration — but initially, only for a period of three working days.

According to the newly revised Section 14AC of the Sales Tax Act, if a Commissioner has valid reasons to believe that an individual is supplying taxable goods without registration, they may initiate action after providing three opportunities for the individual to register.

If the person fails to comply, the Commissioner can direct banks and financial institutions in writing to suspend the individual’s account operations for three days. This suspension can be repeated up to two more times, with a one-week gap between each action.

This move aims to push unregistered individuals into the tax net while giving them multiple chances to regularize their status before stricter penalties apply.