The Federal Board of Revenue (FBR) has introduced a risk-based system to simplify and speed up sales tax registration for businesses, with low-risk applications to be processed within three working days if all required documents are complete.
The measures were notified through Sales Tax General Order No. 20 of 2026 issued on Monday. Under the new procedure, applications submitted through the computerised IRIS portal will undergo risk-based screening, with low-risk cases given priority.
The FBR has directed field formations not to seek additional documents unless they are legally required, necessary for verification or specifically flagged by the automated risk assessment system.
To facilitate manufacturers, the tax authority has also asked sectoral associations affiliated with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to issue pre-registration certificates to eligible members.
The certificates will verify that an applicant is engaged in manufacturing, operates at an identifiable premises, belongs to the relevant sector and has provided information consistent with the association’s records. The certificates will be electronically forwarded to the local registration office (LRO) along with the required documents.
The FBR clarified that the certificates will only help expedite the verification process and will neither replace statutory requirements nor provide any exemption. Associations may also be held responsible if false information is found during physical verification.
Local registration offices have been directed to complete on-site verification of manufacturers within three working days.
Meanwhile, applications categorised as high-risk will remain subject to enhanced scrutiny, including pre- and post-registration verification. The FBR said even low-risk registrations could be reviewed later if any irregularities are detected.
Under the new procedure, applicants whose submissions are incomplete must be informed within seven days about the missing documents, required corrections and the timeframe for addressing the deficiencies.
The FBR has also barred officials from raising vague or general objections, directing them to specify each objection and link it to a clear legal or procedural requirement. Once applicants provide the missing information, their cases will proceed from the existing stage without requiring them to submit a fresh application.
