ISLAMABAD: The Federal Board of Revenue (FBR) has directed tax authorities to complete sales tax registration of low-risk applicants within three working days, where possible, as part of measures aimed at speeding up and streamlining the registration process.
The FBR’s Revenue Division, Inland Revenue, has formally issued Sales Tax General Order No. 20 of 2026, introducing a risk-based mechanism for processing sales tax registration applications.
Under the new instructions, applications will be assessed through computerised risk parameters, with applicants classified as low risk receiving priority processing within a defined timeframe.
Low-risk applications containing all required information and documents will be processed by the relevant Local Registration Office without unnecessary delay, with registration to be granted within three working days where possible.
The FBR said additional documents or information should only be sought from a low-risk applicant when specifically required under the Sales Tax Act, 1990 or Sales Tax Rules, 2006, necessary to verify information submitted by the applicant, or when a specific risk is identified by the computerised risk management system.
Where an application requires further scrutiny, officials will be required to electronically record specific reasons when forwarding it to the relevant officer. Applications cannot be kept pending without justification.
If an application is incomplete or contains missing, incorrect or insufficient information or documentation, the applicant must be informed through the computerised system within seven days of filing the application.
The notification must clearly identify the required information or documents, explain any deficiency or discrepancy, specify how it can be addressed and state the timeframe allowed for compliance.
The General Order makes clear that authorities should not raise generic or vague objections. Every objection must be specific, relevant and traceable to the applicable legal or regulatory requirement.
Once an applicant provides the required documents or information and the application becomes complete, the applicant will not be required to restart the registration process. Instead, the existing application must be processed without unnecessary delay.
FBR Introduces Pre-Registration Support for Manufacturers
The FBR has also introduced a mechanism aimed at facilitating the registration of genuine manufacturing businesses.
Representative sectoral associations of manufacturers operating under the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have been directed to provide pre-registration certification regarding their member applicants’ credentials and existence.
Based on available records, a sectoral association may verify whether an applicant is engaged in, or intends to undertake, the relevant manufacturing activity.
The association may also verify whether the declared business or factory premises are identifiable, whether the applicant is a member of the association where applicable, whether the proposed manufacturing activity corresponds with the relevant sector, and whether the information supplied to the association has been checked against available records.
The certificate issued by the sectoral association will be electronically submitted by the applicant or the relevant association to the Local Registration Office along with other required documents.
The FBR clarified that such certification will serve only as pre-registration verification support and will not replace any legal requirement prescribed under the Sales Tax Act, 1990 or Sales Tax Rules, 2006.
The certificate will also not provide an applicant with any exemption, concession or legal immunity.
Physical Verification Within Three Working Days
For manufacturers, the relevant Local Registration Office will conduct pre-registration physical verification within three working days under Rule 5(5) of the Sales Tax Rules, 2006.
The outcome of the verification will be recorded electronically, after which the application must be processed without unjustified delay.
If incorrect information is discovered during physical verification, the relevant association will be held responsible, according to the General Order.
The FBR stressed that sales tax registration will continue to operate on a risk-based basis.
Applications classified as high risk or suspicious may undergo additional scrutiny, pre-verification, post-verification or other verification measures permitted under the law.
The FBR also clarified that an initial low-risk classification will not prevent authorities from carrying out subsequent verification if new information points to risk, non-existence of the business, misrepresentation, forged documents or any other irregularity.
All Chief Commissioners Inland Revenue and Commissioners Inland Revenue have been directed to ensure strict implementation of the General Order.
Also Read: FBR, ICAP hold seminar in Peshawar on Tax Year 2026 returns
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