Penalties revised for tax fraud, non-filing

SOHAIL SARFRAZ

ISLAMABAD: The amended Finance Bill (2025-26) has revised penalty regime for committing tax fraud and non-filing of monthly statements by intermediaries or courier companies collecting payments from online marketplaces.

The amended Finance Bill (2025-26) has proposed many amendments in the Sales Tax Act relating to the penalty regime.

The amended Finance Bill (2025-26) has relaxed penalties on the recommendations of the National Assembly and Senate Standing Committees on Finance.

The amended Finance Bill (2025-26) revealed that where any online marketplace, payment intermediary or courier fails to furnish prescribed monthly statement within due date, such person shall be liable to pay penalty of three lac rupees for first default if he fails to furnish the prescribed statement for two consecutive months and penalty of Rs one million for each subsequent default within one year.

Where any online marketplace or courier allows use of its services inthe course of e-commerce by unregistered persons. Such person shall be liable to pay penalty of three lac rupees for first default and penalty of one million rupees for each subsequent default.

Any person who commits or, causes to commit tax fraud asdefined under sub-clauses (a), (b), (c), (d), (e) and (f) of clause(37) of section 2.Such person shall be liable, upon conviction by a Special Judge, toimprisonment for a term which may extend upto ten years or withfine which may extend to ten million rupees, or with both. Suchperson shall also be liable to pay the amount equal to the loss of tax caused as confirmed by the Special Judge from such amount reported under sub section (11) of section 37B, including one hundred percent penalty of tax loss and default surcharge under section 34 of the Act.

Any person who commits or, causes to commit tax fraud as defined under sub-clauses (g), (h), (i), (j) and (k) of clause (37) of section 2.Such person shall be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend up to five years or with fine which may extend to five million rupees, or with both. Such person shall also be liable to pay the amount equal to the loss of tax caused as confirmed by the Special Judge from such amount reported under sub section (11) of section 37B, including gone hundred percent penalty of tax loss and default surcharge under section 34 of the Act, revised Finance Bill (2025-26).