Tax experts have accused the Federal Board of Revenue (FBR) of deliberately declaring sales tax registrations inactive to collect additional revenue through the imposition of “extra sales tax.”
Serious allegations of maladministration, administrative excess and negligence have been raised against tax authorities by advisers representing affected businesses. Tax consultant Waheed Shahzad Butt, who is pursuing one such case, claimed that FBR officials unlawfully blocked the filing of sales tax returns to pressure taxpayers into making inflated payments.
According to the details, a company submitted its provisional sales tax return for December 2025 through the FBR online portal. However, the return was automatically locked due to a negative figure appearing in Annexure H-1, which reportedly resulted from an incomplete annexure submission during provisional filing.
The taxpayer argued that resolving the issue required administrative action from FBR officials, but despite repeated requests, no corrective measures were taken. As a result, subsequent returns from January 2026 onward remained pending, eventually causing the company’s sales tax registration to be marked as inactive.
Waheed Shahzad Butt said formal applications and multiple visits to FBR headquarters produced no written response or administrative action from officials concerned.
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