Read was handed a suspended one-match ban from the county championship, until the end of the 2007 season, and any further disciplinary penalty he receives between now and then will see that ban enforced.
He had already been given three penalty points under the England and Wales Cricket Board (ECB)'s disciplinary code for breaching provisions relating to the use of obscene or insulting language towards another player.
The sanction followed an incident during a county championship earlier this month after Sussex spinner Mushtaq trapped Read lbw fifth ball for a duck.
After being given out, Read briefly returned to the pavilion before coming out to confront Mushtaq on the third-man boundary.
An angry exchange ensued in which Read, who had been irritated by Mushtaq's appeals on earlier deliveries, used the word "cheat," according to astonished spectators at the normally sleepy ground in Hove.
The penalty points remain on Read's record for a period of two years. The accumulation of nine or more penalty points in any two-year period triggers an automatic suspension.
Read, also included in England's development squad Friday, reacted to his new punishment by saying: "I reiterate the apology I made on the day of the incident. I would like to apologise again to all concerned for my actions. They were completely out of character and it won't happen again."
Mushtaq, after the initial incident, said the matter was closed as far as he was concerned. "These sort of things can happen," he said.
"People get angry when they are disappointed and I have every sympathy for Chris, who is a fine cricketer. We've shaken hands and as far as I'm concerned that is the end of it."
Read is widely regarded as the best gloveman in English cricket but lost his place in the England line-up to Geraint Jones on account of his rival's superior batting.