FBR introduces risk-based sales tax registration mechanism, promises 3-day processing for low-risk applicants

Profit reported that the Federal Board of Revenue has introduced a risk-based, time-bound mechanism for sales tax registration, set out in Sales Tax General Order No. 20 of 2026 dated August 24, 2026. Applications filed through the IRIS system will now be sorted by computerised risk parameters, with low-risk files receiving priority. A complete low-risk application should be granted by the Local Registration Office within three working days where practicable, while suspicious applications face enhanced scrutiny.

Officers may not seek extra information from low-risk applicants unless the law requires it, verification is necessary, or a specific risk indicator is triggered. Any application needing closer review must be referred with electronically recorded reasons, and incomplete filings must be flagged within seven days with the deficiency and its fix clearly identified. Objections must be specific and linked to a statutory requirement, and a corrected application will not need to restart the process.

For manufacturers, sectoral associations under the Federation of Pakistan Chambers of Commerce and Industry will supply pre-registration certification covering manufacturing activity, business premises and membership records. The FBR said this certification is only facilitative and grants no exemption, while Local Registration Offices must complete pre-physical verification within three working days. The board also noted that low-risk status does not block later checks if fresh information points to fraud or misrepresentation.