FBR to crack down on non-compliant importers from July 1

ISLAMABAD: The Federal Board of Revenue (FBR), from July 1, has decided to take punitive enforcement actions against importers, who failed to comply with the digital invoicing system, with punishments including imposition of penalty, suspension of sales tax registration, and removal of non-compliant importers from the “green channel” at the import stage.

One of the biggest legal/operational action against non-complaint importers would be removal from green channel facility from July 1, 2026.

Sources told Business Recorder that the tax authority is considering strict enforcement measures against importers who have failed to comply with the Digital Invoicing System.

According to sources, FBR has taken notice of the slow pace of registration, integration, and issuance of electronic invoices by importers under the Digital Invoicing regime. The matter is reportedly being treated as a priority area under FBR’s Transformation Plan, which aims to improve documentation, transparency, and real-time reporting of taxable supplies across the economy.

Sources indicate that a substantial number of active importers have yet to integrate with the Digital Invoicing System. It has also been reported that several importers who have already completed integration are still not issuing electronic invoices through the prescribed system.

Under SRO 1852(I)/2025, importers were required to integrate with the Digital Invoicing System by 25 October 2025 and issue all invoices through the system from 1 November 2025.

Officials familiar with the matter suggest that FBR is now considering punitive enforcement action against non-compliant importers. The measures reportedly under consideration include initiation of penalty proceedings, suspension of sales tax registration, and removal of non-compliant importers from the green channel at the import stage until they complete compliance with Digital Invoicing requirements. Importers who have not yet completed registration or integration, or who are not issuing electronic invoices despite integration, may therefore face legal and operational consequences if compliance is not completed at the earliest, they added.—SOHAIL SARFRAZ