SRO 1662(I)/2026 Explained: Sealing of Non-Integrated Businesses and Seizure of Goods Without Tax Stamps
SRO 1662(I)/2026 (29 Sep 2026): how FBR can now seal a business that has not integrated, how the seal is removed, and when goods and vehicles are seized.
The short answer
This page explains SRO 1662(I)/2026 in plain words. It tells you when FBR can now seal a business that has not integrated with its system, how the seal is removed, and when goods and the vehicle carrying them can be seized.
FBR issued SRO 1662(I)/2026 on 29 September 2026. (An SRO is a Statutory Regulatory Order — a government notification that has the force of law.) It changes the Sales Tax Rules 2006 under section 50 of the Sales Tax Act 1990, read with sections 33 and 40C. It does three things. It adds a sealing and de-sealing procedure for non-integrated persons other than Tier-1 retailers (new rules 150ZES, 150ZET and 150ZEU). It widens FBR's production monitoring rules. And it adds a new procedure to seize and confiscate goods that move without monitoring or without tax stamps (new rule 150ZQZGA).
Why now? The Finance Act 2026 set the penalty for not integrating at Rs 1 million, plus up to Rs 5 million more if the failure continues one month after the first penalty. It also allowed sealing of the premises 'in the manner prescribed'. SRO 1662 is that manner for businesses that are not Tier-1 retailers. 'FBR Sales Tax Circular 01 of 2026 Explained: Invoices for Exempt Sales and Advances, Rs 1 Million Non-Integration Penalty, Simulated Invoice Register and the 20% Input Tax Penalty' covers the law behind it.
This guide is general information, not legal advice. Read the SRO itself on fbr.gov.pk before you act on any single point.
Who can be sealed, and the seven steps before a seal
The new sub-chapter applies to a person who is required to integrate his business with FBR's computerised system for monitoring, tracking, reporting or recording of sales, production, clearance or stock, but fails to do so. The rule names a production monitoring system, video surveillance, 'digital eye' or any other prescribed monitoring mechanism. Tier-1 retailers already had their own sealing rules in the first sub-chapter of the same chapter.
The rule does not use the words 'electronic invoicing'. But it ends with 'any other prescribed monitoring mechanism', and the law it rests on, clause (25) of section 33, also covers failing to record sales through FBR's computerised system. So do not treat this as a gap to rely on. Being integrated is the only safe position.
A seal cannot happen on the spot. Rule 150ZET sets these steps. First, an officer not below the rank of Assistant Commissioner sends a written report to the Commissioner Inland Revenue. Second, the Commissioner makes an inquiry. This must include checking any claim that the failure was caused by FBR's own system, the authorised vendor, or a power or telecom breakdown. Third, the Commissioner sends the report to the Chief Commissioner with reasons for or against sealing.
Fourth, the Chief Commissioner allows or refuses the sealing by a written order with reasons, and names the team that will do it. Fifth, the order must say whether the whole premises or only a part, a production line or a filling line is to be sealed. Sealing the whole premises needs written reasons. Sixth, a copy of the order must be served on you before it is carried out. Seventh, the Commissioner may ask the police for help to carry it out.
Step two matters most for honest businesses. If an FBR outage, a vendor fault or a power cut stopped you, the inquiry must look at that claim. Keep proof: screenshots of FBR error messages, your vendor's support tickets and records of power or internet breaks.
How the seal is removed
Rule 150ZEU sets out de-sealing. The Commissioner first imposes a penalty by an order under section 33. The premises then stay sealed until two things are done: the penalty is paid, and the business is integrated with FBR's computerised system.
The integration itself must be done in front of an FBR team set up by the Commissioner, and that team must include a technical person. Within three days, the Commissioner must give the Chief Commissioner a written certificate that the system is installed as the rules require and is free of technical and functional errors.
So a sealed business pays the penalty, loses trading days, and still has to integrate at the end. Integrating before any report is written costs far less. 'FBR Digital Invoicing Penalties in 2026: Fines, Deadlines and How to Stay Compliant' shows the full penalty picture, and 'Sales Tax Registration Suspended for Not Integrating with FBR? How to Get It Restored (2026)' covers the separate risk of suspension.
Seizure of goods and vehicles: the new rule 150ZQZGA
The second half of the SRO is about goods. Specified taxable goods that are made, moved or sold without being monitored through the production monitoring system, or without the prescribed tax stamps, banderoles, stickers, labels or barcodes, can be seized and confiscated under section 40C. The vehicle carrying them can be seized too. (Seizure means the goods are taken into custody. Confiscation means they are taken for good after a hearing.)
Third Schedule goods (goods taxed on their printed retail price) can also be confiscated if they are supplied without the retail price printed as the law requires. 'FBR STGO 08 of 2026: Printed Retail Price and Sales Tax on 56 Third Schedule Items — What Makers, Importers and Shops Must Do' explains what must be printed.
The rule also sets clear time limits. The seizing officer must make a signed list of the goods on the spot and give you a copy of the seizure memo. The goods go into official custody within 48 hours, and the owner pays the storage costs. A show-cause notice must be issued within 7 days of seizure, giving you at least 14 days to reply. The case must be decided within 30 days of seizure; the Commissioner can extend this once by up to 15 days, with written reasons.
After a hearing, the officer must pass a speaking order (a written order that gives its reasons). It either confiscates the goods and vehicle or releases them. Third Schedule goods may be released on a redemption fine of at least 20% of their total retail price. Penalty and default surcharge can be added, and you can appeal under the Act.
The SRO also widens production monitoring. FBR can now apply it to any registered person or class of persons, any manufacturer, any Third Schedule goods or any other goods it notifies. Equipment must come only from an FBR-authorised vendor, and goods must not be made or cleared except through the monitoring system. 'FBR Track & Trace vs Digital Invoicing: Two Different Systems Explained (2026)' explains how these systems differ from digital invoicing.
What to do this week
1. Check your digital invoicing is really live: a production token, and an FBR invoice number (IRN — Invoice Reference Number, the unique number FBR gives every invoice) on every sale. If not, 'How to Register for FBR Digital Invoicing (Step by Step)' shows the route.
2. If FBR has notified your goods or sector for production monitoring, confirm your equipment is from an authorised vendor and is running on every line.
3. Start an outage file today. Save FBR error screens, vendor tickets and power-cut records with dates.
4. If you receive a report, notice or seizure memo, note the dates and reply inside the time limit. 'Received an FBR Digital Invoicing Notice? What It Means and What to Do' helps you plan the reply.
Digi Invoice handles the digital invoicing side: it posts each sale to FBR, checks it against FBR's rules first, and stores the IRN and QR code. It does not install production monitoring cameras. You can create a free account and post a test invoice in the sandbox (FBR's free practice system where test invoices do not count as real) today.
Difficult words in this guide
Sealing — officers lock and seal your premises, or one production line, so you cannot trade from it.
Production Monitoring System — cameras and counters on factory lines that report output to FBR in real time.
Seizure — goods or a vehicle are taken into official custody while the case is decided.
Confiscation — the goods are taken for good after a hearing and a written order.
Redemption fine — money paid to get confiscated goods back, where the rules allow it.
For more terms, see 'FBR Digital Invoicing Dictionary — 25 Key Terms Explained'.