FBR has clarified that the Active Taxpayers List (ATL) for 2025 will be determined on the basis of returns filed for Tax Year 2024, rejecting reports about the mass inactivation of taxpayers. The FBR confirmed that those who filed timely extension applications have been automatically granted a 15-day extension.
Despite a record surge in tax filings, the FBR missed its FY26 collection target by Rs274 billion in July–October, with October alone falling Rs76 billion short. Individual taxpayers and outreach campaigns boosted compliance, while IMF-linked contingency measures loom.
The Federal Investigation Agency (FIA) has cancelled the FIR against former FBR chairman Syed Shabbar Zaidi in a case involving alleged unauthorised tax refunds of PKR 16 billion. The case, which involved firms from the banking, cement, and chemical sectors, has been classified as “C-Class” by FIA Karachi, clearing Zaidi of charges and sparking renewed debate over tax governance and accountability in Pakistan’s revenue system.
As glitches in the FBR’s IRIS portal persist, tax bars urge Prime Minister Shehbaz Sharif to extend the return filing deadline to November 30, 2025 — marking what could become the third extension in Pakistan’s turbulent tax season.
FBR has installed point-of-sale (POS) systems at 40,000 retail outlets during FY2024–25, expanding coverage to 38 percent of Tier-1 retailers. The initiative, coupled with legal settlements worth Rs255 billion and stronger enforcement, helped raise Pakistan’s tax-to-GDP ratio to 10.3 percent — the highest in five years.
Tax experts welcomed FBR’s decision to set up a committee for resolving tax return issues but called for extending the filing deadline by 7–15 days, saying the late formation leaves little time for taxpayers to seek assistance.
Just days before the October 31 deadline, the FBR has amended the 2025 income tax return form to mandate CNIC details for all inflows and outflows — a move that tax experts say has disrupted the filing process and deepened frustration among taxpayers.
Nearly one-third of Pakistan’s 5.5 million tax filers—about 1.7 million people—have declared zero taxable income, raising alarm within the Federal Board of Revenue. The FBR plans to issue notices and conduct extensive audits to detect tax evasion, especially among those showing lower income than last year.
The Appellate Tribunal of the Punjab Revenue Authority (PRA), Lahore, has ruled that the sale of developed plots does not attract provincial sales tax, marking a major shift from earlier precedents. The Tribunal held that outright sales, involving transfer of ownership, fall outside the scope of taxable services defined in the Punjab Sales Tax on Services Act, 2012. The decision overturns the department’s previous stance and is expected to significantly impact the real estate development sector.
A tax lawyer has filed a petition before the Federal Tax Ombudsman (FTO) seeking contempt action against Federal Board of Revenue (FBR) officials for not uploading the manual income tax return for Tax Year 2025 within the prescribed timeframe. Despite the FTO’s earlier order, the return form remains unavailable, causing delays and hardship for taxpayers relying on manual filing.