FCC has been told that Section 7E of the Income Tax Ordinance, 2001—introducing tax on deemed income from immovable property—is unconstitutional and should be struck down. Petitioners argued that the levy effectively amounts to a tax on capital value beyond federal legislative authority.
The FBR has introduced revised fair market values for properties in Islamabad, targeting improved tax compliance and transparency. The updated rates are expected to impact transaction costs, particularly in prime sectors, while curbing under-declaration in real estate deals.
The Federal Board of Revenue (FBR) has uncovered large-scale corruption within Pakistan Customs, leading to compulsory retirement of multiple officials over undisclosed assets and misconduct. The move highlights intensified accountability measures and a stricter stance against financial irregularities in the public sector.
Federal tax revenues in Pakistan may fall short by Rs800–1,000 billion in the current fiscal year, according to KP Finance Adviser Muzzammil Aslam, who also warned that cuts in PSDP spending are increasing financial pressure on Khyber Pakhtunkhwa and widening its fiscal shortfall.
PM Shehbaz Sharif orders strict legal action over over-invoicing, directs FBR and enforcement agencies to strengthen accountability and prevent revenue losses.
FBR issues new guidelines under Section 7F, allowing builders and developers to seek exemption from advance tax under Section 236C, easing liquidity pressures and improving compliance clarity.
The Sindh High Court has stayed the recovery of default surcharge on super tax liabilities, providing interim relief to taxpayers and reinforcing the requirement of due process before enforcement actions by tax authorities.
Pakistan’s salaried class paid Rs. 420 billion in income tax during the first nine months of the current fiscal year, more than twice the Rs. 197 billion contributed by the property sector, according to FBR data. The figures highlight a rising tax burden on wage earners amid inflation, while the government considers relief measures for property and first-time home buyers in the upcoming budget.
The government is considering reducing GST on dairy products from 18% to 10% on the directive of Commerce Minister Jam Kamal Khan, aiming to provide relief and boost the dairy sector. The proposal follows discussions with the Pakistan Dairy Association, focusing on tax reduction, sector formalisation, and improving productivity through better regulation and farmer support.
Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a 21% increase in Sales Tax on Services collection during Jul–Mar FY2025-26, reaching Rs. 34.60 billion compared to Rs. 28.60 billion last year. The growth reflects improved tax compliance, stronger enforcement, and expansion of the service sector tax base, supporting overall revenue of Rs. 38.80 billion in the province.