Islamabad (Lord Media): The Federal Board of Revenue (FBR) has decided to intensify its crackdown on tax fraud and fake invoicing. Proposed amendments to tax laws through the Finance Bill 2026 suggest heavy fines and strict penalties for non-integration with the digital tax system.
The Finance Bill proposes a fine of up to 1 million rupees for businesses not integrating with the FBR’s digital system, with the penalty increasing to 5 million rupees for continuous violations. Businesses failing to integrate within the stipulated time may face closure.
According to sources, the Finance Bill includes stringent measures against fake and fictitious tax invoices. A penalty equal to the full value of the invoice is proposed for issuers of fake invoices, along with a recommendation to publish a public list of offenders.
Tax credits obtained through fictitious invoices will be automatically canceled, and an automated action system against fake invoices is proposed. A 20% penalty will be imposed if a discrepancy between input and output tax is proven.
Additional fines, along with a surcharge, will be imposed on incorrect input tax credits, and buyers involved in fake invoice cases will also face action. A 20% additional penalty is proposed for failing to return tax credits within 60 days.
