The Finance Act 2025 has introduced sweeping changes to Section 182 of the Income Tax Ordinance, 2001, intensifying the penalty regime for non-compliance in the digital economy. New serials (12B and 15A) have been added, while penalties under existing Serial No. 1A and 15 have been updated.
These amendments target banks, payment gateways, courier services, and digital sellers, compelling them to strictly follow tax deduction and registration protocols—particularly under Sections 153(2A), 160, and 181.
Summary of Key Amendments to Section 182
(a) Against S. No. 1A
Updates:
Expanded scope: Includes reference to Sections 165C (added in Finance Act 2025).
Penalty increased: From Rs. 5,000 to Rs. 50,000 for non-filing of statements.
(b) New S. No. 12B – Failure to Deduct or Deposit Tax by Banks, Couriers, or Payment Gateways
| S. No. | Offence | Penalty | Relevant Section |
|---|---|---|---|
| 12B | Where a banking company, payment gateway, or courier service fails to deduct or deposit tax at the time of payment to sellers of digitally ordered goods or services under Section 160 | Penalty equal to 100% of the tax amount not deducted/deposited | Section 153(2A) |
Example: If a courier fails to deduct Rs. 100,000 tax while paying a vendor, it will now face a Rs. 100,000 penalty under S. No. 12B.
(c) Amendment in S. No. 15
Clause added: “excluding sub-section (2A) of section 153”
This excludes digital transactions under 153(2A) from the existing general penalty, as now covered under 12B.
(d) New S. No. 15A – Penalty for Unregistered E-Commerce Sellers
| S. No. | Offence | Penalty | Relevant Section |
|---|---|---|---|
| 15A | Any person selling digitally ordered goods or services through an online marketplace without registering under the Income Tax Ordinance, 2001 | – Rs. 500,000 for first default |
Rs. 1,000,000 for each subsequent default | Section 181 |
Example: A vendor on Daraz or Facebook Shop not registered with FBR will now face Rs. 500,000 penalty initially and Rs. 1 million every time thereafter if non-compliance continues.
Legal & Business Implications
E-commerce formalization: All online sellers are now mandatorily required to register with FBR.
Platforms must enforce compliance: Courier services and payment processors must refuse unregistered vendors or face penalties.
Zero tolerance enforcement: FBR is signaling a tech-driven audit and enforcement framework, especially under Section 165C & 175AA.
Potential blacklisting: Persistent non-compliance may lead to blacklisting, withholding of payments, or forced audits.
FAQs – Penalty Provisions under Section 182 (Finance Act 2025)
What is Section 182 of the Income Tax Ordinance?
It outlines penalties for non-compliance with various tax provisions.What is the new penalty for courier or bank failure to deduct tax?
A penalty equal to 100% of the amount of tax involved under S. No. 12B.What happens if a digital seller is unregistered?
Rs. 500,000 penalty for the first default and Rs. 1 million for every repeat offense under S. No. 15A.Which law mandates online vendors to register?
Section 181, amended in the Finance Act 2025.What does S. No. 12B target?
Non-compliance by banks, payment gateways, and couriers handling digital orders.Does the law allow for any grace period?
No such grace period is mentioned; vendors and platforms must comply from July 1, 2025.Can courier services be penalized for unregistered sellers?
Yes, under S. No. 12B and indirectly under platform obligations tied to Section 181.Is this linked to Section 153(2A)?
Yes, digital transactions fall under 153(2A), which is now specifically penalized under 12B.Can these penalties be appealed?
Yes, through regular appellate processes under the Income Tax Ordinance, including Section 127 and 131.Does this affect small sellers or freelancers?
Yes, if they sell online using couriers or platforms, they are included.Is the penalty capped?
No explicit cap—penalties grow with repeated defaults or larger amounts involved.Who enforces these penalties?
Commissioner Inland Revenue and FBR Enforcement Units.Are marketplaces like Daraz now liable?
While the penalty applies to vendors and service providers, platforms may face scrutiny if they enable non-compliance.Are penalties automatic?
Not automatic, but likely enforced upon detection through FBR’s AI-driven data cross-matching systems.Can these defaults lead to audits?
Yes. Mismatches or non-registration can trigger audit proceedings under Section 177.Is registration difficult?
No, registration through IRIS portal is straightforward with valid CNIC and business information.Can consultants help with compliance?
Yes. Registered tax advisors or firms can assist with registration and advisory.Are online service providers also liable?
Yes, those providing digitally delivered services are equally covered.Does this cover cross-border sellers?
Only those based in or delivering from within Pakistan are subject to these provisions.Is the law already enforced?
Yes, effective from July 1, 2025—non-compliance now leads to penal exposure.
Disclaimer:
This blog post is intended solely for informational and educational purposes and does not constitute legal or tax advice. Readers are advised to consult with a qualified tax practitioner for case-specific guidance. The publisher disclaims any liability arising from reliance on this content.
