Goods in Transit: What Tax Officers Can — and Cannot — Demand

FBR has issued specific instructions aimed at preventing unnecessary interference with the movement of goods during transit. Field formations have been directed not to demand a driver’s CNIC or documents other than the applicable digital invoice or Stock Transfer Note, and vehicles should not be diverted to or detained at unauthorised premises.

The instructions further provide that goods in transit should not ordinarily be physically checked, examined or unloaded. Even where a digital invoice has not been issued, that omission is to be dealt with separately under the applicable provisions and does not, by itself, justify detention of the vehicle or goods. For Third Schedule goods, checking may be undertaken specifically to verify whether the prescribed retail price has been printed or embossed.

For businesses involved in manufacturing, distribution and logistics, these instructions are practically significant. They establish clearer boundaries for transit checks while preserving FBR’s ability to act against genuine non-compliance. Businesses should nevertheless ensure that the correct digital invoice or Stock Transfer Note accompanies goods in transit, as proper documentation remains the first line of defence against unnecessary disputes during movement of goods.