FBR E-Auction for Seized Goods: Registration Fee Rs25,000, 72-Hour Online Bidding

By Bilal Ahmed  |  Business Desk  |  October 23, 2026  |  Updated: October 23, 2026

The Federal Board of Revenue (FBR) has rolled out a fully electronic auction system for seized and confiscated goods, notifying the new framework on October 22, 2026 through SRO 1889(I)/2026, which amends the Sales Tax Rules 2006 under the powers granted by sections 50 and 40F of the Sales Tax Act 1990. Under the new regime, anyone holding a CNIC or NICOP can register as an e-auction bidder with a one-time fee of not less than Rs25,000, bid online for 72 hours once the first bid lands, and — if they win — pay the full accepted amount plus applicable taxes within 7 days to take delivery of the goods.

If you have ever seen a government auction notice in a newspaper and wondered how ordinary people get a seat at the table, this changes the answer. Confiscated and seized goods — the cars, electronics, machinery and consignments FBR ends up holding after enforcement actions — will now be sold through a public, online bidding process instead of in-person procedures most citizens could never access. The result should be better prices for the state, a fairer shot for honest buyers, and a clear paper trail for every lot sold.

What the New E-Auction Rules Cover

The framework applies to two categories of goods. The first is confiscated goods — items the state has taken ownership of after enforcement proceedings. The second is seized goods whose disposal has been finalised through an adjudication order. In plain terms: once the legal dust has settled and the state has the right to dispose of the goods, they can now go under the electronic hammer.

There is one hard boundary. Goods under a judicial stay order are excluded from auction until that stay is vacated or withdrawn. The authorised officer must verify the legal status of every lot before each auction — checking for stay orders, release or redemption options, and any other legal restrictions. That check happens before every single auction, not as a one-time exercise, which closes a loophole that has historically caused legal headaches after sales.

How Registration Works

Registration is where the system opens up to the public. Any person holding a valid CNIC or NICOP can register electronically through the FBR/Inland Revenue e-auction module. The applicant pays a one-time registration fee of not less than Rs25,000, receives a unique identification number, and gets their registration details through their registered email and mobile number.

A few practical points worth noting. First, registration is not automatic — the authorised officer can reject an application with written grounds, so there is a verification gate. Second, “not less than Rs25,000” means Rs25,000 is the floor; the department may set a higher fee. Third, everything happens through the module itself: no visiting an office, no paper file. For bidders outside the big cities, that may be the most meaningful part of the reform.

The 72-Hour Bidding Window

Once bidding opens, it runs for 72 hours from the receipt of the first bid. Three days is a deliberately balanced window: long enough for word to spread and for serious bidders to arrange financing, short enough to keep auctions moving and prevent lots from sitting in warehouses for months.

The winning bid must meet the reserve price. Exceptions are possible, but only with the approval of the relevant Inland Revenue authority — so the floor price cannot be quietly waived by an individual officer. That detail matters, because the reserve-price mechanism is what protects the state’s revenue interest. If nobody bids at or above the reserve, the goods don’t sell at a throwaway price.

Payment and Delivery

Winning bidders have 7 days to pay the full accepted bid amount plus all applicable taxes, duties, fees and charges. Payment is electronic, and goods are released only after full payment is verified, through an electronic release order.

The sequence is deliberate and bidder-friendly on the legal side: pay in full, get verified, then receive an electronic release order that authorises the custodian to hand over the goods. No payment, no goods — but equally, verified payment triggers a documented release. For anyone who has dealt with government disposals before, the electronic release order is the document that replaces the old bundle of handwritten challans and receipts.

How the Reserve Price Is Set

Before any auction, a three-member valuation committee fixes the reserve price. It comprises the Additional Commissioner, the Deputy Commissioner and the Assistant Commissioner of Inland Revenue, and it can engage a technical or valuation expert where the goods require specialist assessment.

The committee does not guess. The rules direct it to weigh depreciation, physical condition, remaining shelf life, prevailing market prices, declared sales tax invoices, and customs-assessed values. That is a sensible spread of inputs: market prices keep the reserve honest against what the goods would actually fetch, invoice and customs values anchor it to documented figures, and condition and shelf life stop a three-year-old seized smartphone from being priced like a new one. Including shelf life is a telling detail — it acknowledges that seized perishables and time-sensitive goods lose value fast and should be moved quickly.

The Custodian’s Role

Behind every auction sits a custodian — the officer or office holding the goods. The new rules spell out the custodian’s duties: identify and record the goods, upload inventories, photographs and documents to the module, keep the goods in safe custody, facilitate physical inspections by prospective bidders, and deliver the goods once payment and legal formalities are complete.

The photograph-and-document requirement deserves a second look. Under the old way of doing things, buyers often bid on lots they could barely inspect. Now the inventory is visible online before bidding starts, and physical inspection is an explicit duty, not a favour. For honest bidders, that reduces the classic auction risk of paying for something that turns out to be damaged or incomplete.

Why This Matters — For the State and For You

For the state, the logic is straightforward: confiscated goods represent trapped revenue. Every container of seized electronics or consignment of confiscated goods sitting in a warehouse is money that hasn’t reached the treasury, and storage itself costs money. A transparent online auction that reaches more bidders should push winning bids closer to true market value — which is more revenue without raising a single tax rate.

For ordinary buyers, the appeal is different. Government auctions have historically been a well-kept secret of traders and insiders who knew when and where to show up. A public module with published inventories, a 72-hour window, and electronic bidding levels that playing field. If you are in the market for a vehicle, machinery, or commercial lots, it is worth keeping an eye on the module once it goes live.

The reform also lands in a broader push to squeeze more from existing revenue channels. The same week, petrol and diesel price revisions kept petroleum levies — a major FBR collection line — in the headlines, while the government also moved the dial on National Savings profit rates this month. And as public-sector unions continue to resist the contested PMDC privatisation, FBR’s e-auction framework shows the other side of the state’s playbook: digitise and monetise existing assets rather than sell institutions off.

What to Watch Next

The SRO lays down the legal framework; the module itself still has to go live and start listing lots. Three things will decide whether this works in practice. First, whether the e-auction module is genuinely usable — searchable inventories, clear photographs, and reliable uptime. Second, whether the 72-hour window and reserve-price discipline hold up when the first high-value lots come up. And third, whether registration verification is rigorous enough to keep out proxy bidders without becoming a bureaucratic wall.

TimelyUps Business Desk will follow this story as FBR operationalises the module and the first e-auctions are announced.

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