ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a framework for electronic auctions of seized and confiscated goods through amendments to the Sales Tax Rules, 2006, to formalize the disposal process through an online bidding mechanism.
The FBR has issued an SRO 1889(I)/2026 to notify “Electronic Auction (E-Auction) Disposal of Seized and Confiscated Goods,” rules.
Under the new framework, individuals holding a valid Computerised National Identity Card (CNIC) or National Identity Card for Overseas Pakistanis (NICOP) can register electronically as bidders by submitting an online application and paying a one-time registration fee of at least Rs25,000. Successful applicants will be assigned a unique identification number through the e-auction module.
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The rules establish an electronic platform administered by the FBR for registration, listing of goods, bidding, approval, payment, delivery and maintenance of auction-related records.
Custodians of goods will be responsible for identifying and recording goods available for disposal, uploading inventories, photographs and relevant documents, ensuring safe custody, facilitating inspections and delivering goods to successful bidders after payment and completion of applicable legal requirements.
Before initiating an auction, the authorised officer will verify the legal status of the goods, including any court-ordered stay, release or redemption options, restrictions and applicable compliance requirements. Goods subject to a judicial stay will not be auctioned until the stay is vacated or withdrawn.
The reserve price for each lot will be determined by a valuation committee comprising an Additional Commissioner, a Deputy Commissioner and an Assistant Commissioner Inland Revenue. The committee may also engage a technical or valuation expert where required.
The valuation will take into account factors including the average unit price of similar goods declared in sales tax returns during the preceding three tax periods, printed retail prices after deducting an appropriate dealer or wholesaler margin, customs-assessed values for imported goods, and market quotations where other reference prices are unavailable.
If a lot remains unsold in three consecutive auctions, the valuation committee may reduce its reserve price by up to 10 percent of the reference reserve price at a time.
The auction notice will specify the unique auction number, description and quantity of goods, location, reserve price, photographs, inspection arrangements, bidding period, minimum bid increment, bid security, applicable taxes and duties, restrictions, payment terms and delivery conditions.
Online bidding will remain open for 72 hours from the receipt of the first bid. The e-auction module will automatically display the highest bid and record each valid bid with its date, time and bidder identification.
The rules also provide that electronic records maintained under the system will be treated as valid records for the purposes of the Sales Tax Act and the Sales Tax Rules.
Copyright Business Recorder, 2026