Abdul Ghani

The Federal Board of Revenue has established two new checkposts as part of the government's ongoing efforts to regulate tax-exempt areas and ensure compliance with fiscal regulations under the Sales Tax Act of 1990. The FBR has taken the initiative under the powers conferred by Rule 69F of the Sales Tax Rules, 2006, according to a notification. The FBR notification, SRO 2185(1)/2025, specifies the creation of the Kohala bridge checkpost and the Nakoder checkpost.

These posts are strategically located along key routes to oversee the movement of goods in and out of tax-exempt zones. According to the notification, the Kohala bridge checkpost will oversee traffic moving from Muzaffarabad (Azad Jammu and Kashmir) toward Murree and Abbottabad. Meanwhile, the Nakoder checkpost in Nakoder (Dina), will monitor the route from Mirpur (AJK) toward Jhelum Road. The move comes as part of a broader initiative by the government to improve its tax collection system and minimise the risk of tax evasion.

By setting up these posts, the FBR seeks to close any gaps in monitoring, ensuring that exempt goods are not being diverted into taxable areas. The Kohala Bridge and Nakoder checkposts will play a key role in preventing the misuse of tax exemptions, ensuring that only goods that meet the criteria for tax-exempt status benefit from the relief. Speaking to Wealth Pakistan, Dr Najeeb Ahmad, a spokesperson for FBR, emphasised the significance of the new measure: “The establishment of these checkposts is a pivotal step towards ensuring tax compliance across critical routes, particularly in tax-exempt zones.

Our goal is to create a more transparent and efficient system, where only eligible goods receive exemptions. The FBR remains committed to enhancing its monitoring processes to curb tax evasion and ensure that businesses and individuals comply with the law.” The spokesperson further noted, “These checkposts will not only play an important role in ensuring that tax exemptions are properly applied but also serve as a tool to streamline goods movement, prevent misuse, and safeguard the national tax base.

We believe this initiative will contribute significantly to increasing tax revenue and promoting economic stability in the long term.” Moreover, the FBR’s move to establish these posts is also a response to the increasing demand for better governance and transparency in the country’s tax system.

With these efforts, the FBR hopes to improve revenue collection, reduce the black-market trade of exempt goods, and create a fairer playing field for businesses that comply with tax regulations. The creation of these checkposts marks a step forward in the country’s fiscal reforms, reinforcing the government’s commitment to ensuring a more efficient and transparent tax system.

Credit: INP-WealthPk