FBR deploys 520 third-party auditors across Pakistan (120 North, 135 Central, 265 South) in phase one of its Transformation Plan. Aiming to boost tax scrutiny & compliance, new SOPs guide onboarding and a mandatory 3-week IRS Academy training. This signals FBR’s reliance on external expertise for rigorous enforcement.
FBR collected Rs30 billion in withholding tax from Karachi electricity consumers (July-April FY25), a 52% surge from last year. Driven by rising tariffs & industrial demand, this Section 235 tax is tiered by usage. It highlights inflationary pressure and FBR’s focus on utility-based revenue.
FBR orders nationwide tax offices to work overtime, including Saturday, May 31, until 8 PM, to meet the Rs12.332 trillion revenue target for FY24-25. Facing immense pressure and IMF commitments, the FBR aims to close a significant shortfall, building on recent 30% growth in April.
Sindh implements new super tax on agricultural income, effective Jan 1, 2025. Progressive rates (up to 10% for incomes over Rs500M) target high-income landowners to boost provincial revenue and increase transparency in the sector, marking a significant fiscal reform.
FBR admits high taxes are driving capital flight to Dubai, with Pakistani businesses & investors relocating. Senate Committee criticizes FBR’s “suffocating” policies. While FBR plans higher evasion penalties & reports raid successes, senators urge making Pakistan more competitive to stem the exodus.
FBR deems Rs. 14.3 trillion tax target “impossible” for FY26. IMF agrees to lower it by up to Rs. 250B, setting a new goal near Rs. 14.1 trillion. Lower inflation/growth forecasts cited. Govt commits to cutting spending & boosting non-tax revenue. Income tax exemption up to Rs. 1M for low-income earners possible.
FBR is probing federal officials receiving both salary & pension after retirement. This move, aiming for transparency & fiscal discipline, requires detailed data by May 26. It’s about streamlining public payroll and clarifying compensation for re-employed government staff.
The FBR is cracking down on 72 powerful Pakistanis, scrutinizing billions in undisclosed foreign income and offshore assets. Powered by international data exchange, this bold move marks a significant escalation in Pakistan’s fight against tax evasion and illicit offshore wealth.
PM Sharif orders FBR to digitize & automate tax system, targeting evaders. New e-tag, digital monitoring, and AI systems to boost revenue & fight smuggling.
The FBR is facing allegations of violating its own binding instructions and judicial orders in withholding tax recovery cases, raising concerns about administrative overreach and justice.