FBR eases sales tax registration for businesses

ISLAMABAD: The Federal Board of Revenue (FBR) has announced new measures to streamline sales tax registration for businesses, particularly those considered low risk. Under the new system, applications filed through the IRIS portal will be screened using risk-based checks. The measures were notified through Sales Tax General Order No. 20 of 2026, issued on Monday. Under the new procedures, applicants falling in the low-risk category will be processed within three working days under a risk-based framework, provided all required documents are complete. Applications will be submitted through the computerised IRIS system. The FBR has directed all field formations not to demand additional documents unless they are legally required or flagged by the risk-based system. Bars field offices from seeking unnecessary documents To further facilitate manufacturers, the FBR has asked sectoral associations under the Federation of Pakistan Chambers of Commerce and Industry to issue pre-registration certificates to their members. These certificates will confirm that the applicant is engaged in manufacturing, that the business premises are identifiable, that the activity corresponds with the relevant sector and that the details provided match the association’s records. The certificates will be sent electronically to the local registration office (LRO) along with other required documents. The FBR clarified that these certificates are intended only to expedite verification and do not replace legal requirements or grant any exemptions. It also pointed out that associations will be held responsible if false information is discovered during physical checks. Local registration offices must also conduct on-site verification of manufacturers within three working days. At the same time, the FBR stressed that applications flagged as high-risk will continue to face stricter scrutiny, including pre- and post-verification. Even low-risk registrations may be rechecked later if irregularities are detected. To make the registration process quicker and more transparent, the FBR has laid out a step-by-step procedure. All applications filed through the IRIS portal will be screened using a risk-based system. Those identified as low-risk will be given priority and, if complete, processed within three working days. Field formations have been instructed not to ask for additional documents unless they are legally required, needed to verify information or flagged by the computerised risk system. If an application is incomplete, the applicant must be informed within seven days, with clear details of what is missing, what needs to be corrected and how much time is allowed to rectify the deficiencies. The order also directs that no vague or general objections be raised — every objection must be specific and linked to a clear requirement. Once the missing information is provided, the application should proceed without requiring the applicant to restart the process. Published in Dawn, August 25th, 2026

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