Islamabad (Lord Media): The upcoming 2026-27 budget proposes heavy fines for businesses not integrating into the digital tax system. According to the Finance Bill, businesses failing to integrate digitally with the Federal Board of Revenue (FBR) could face fines up to 1 million rupees, with repeated violations attracting penalties up to 5 million rupees. Businesses not complying within the set timeframe may face closure.
The Finance Bill includes stringent measures against issuing fake and fictitious tax invoices. It suggests imposing fines equal to the full value of the fraudulent invoice and recommends publishing a public list of offenders.
Tax credits obtained on the basis of fictitious invoices will be automatically cancelled, with a proposed automated action system to be introduced.
According to the Finance Bill, a 20% fine will be imposed for discrepancies between input and output tax, and additional penalties, including surcharges, will apply for incorrect input tax credits. Buyers involved in fake invoice transactions will also face action, with a proposed 20% additional fine if the tax credit is not returned within 60 days.
