Pakistan’s high tax burden is constraining growth, with corporate and salaried taxpayers shouldering a disproportionate share. A proposed Rs975bn tax-relief package aims to lower rates, stimulate investment, and expand the formal economy, pending IMF approval.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a 30% increase in Sales Tax on Services in the first half of FY2025-26, collecting Rs23.26 billion. Total revenue reached Rs26.62 billion, reflecting stronger compliance and effective enforcement across the province’s service sector.
The Federal Board of Revenue (FBR) fell short of its H1 FY2025–26 target by Rs330 billion, lower than projections, reducing the need for immediate tax hikes on solar panels, smartphones, and banking services. Exporters’ income tax returns are under careful scrutiny, but FBR assures no undue hardship.
The Sindh Revenue Board (SRB) achieved a 25% increase in December 2025 revenue, collecting Rs34.006 billion. Half-year collections for FY2025–26 reached Rs161.431 billion, reflecting improved tax compliance and administration across Sindh.
The FBR has finalized its strategy to achieve revised tax collection targets for the second half of FY2025–26, reviewing revenue shortfalls, recovery plans, and potential new measures to safeguard fiscal goals.
The Federal Board of Revenue has dismissed social media claims about unjust scrutiny of exporters’ tax returns, stating that reviews for Tax Year 2025 are part of routine compliance following changes introduced under the Finance Act, 2024.
The Federal Board of Revenue has directed a detailed review of over 480 leading exporters whose taxable income fell in 2025, sparking concern in the export sector over aggressive enforcement actions.
The Federal Board of Revenue has missed its tax targets for five consecutive months, posting a Rs335bn shortfall from July to December, raising concerns ahead of an upcoming IMF review.
The Federal Board of Revenue has struck off 15,678 companies from the Active Taxpayers List following the December 31 filing deadline. Inactive companies will now face double withholding tax rates, impacting cash flows, unless they pay a Rs.20,000 fine to restore active status.
The Federal Board of Revenue has reduced a senior IRS officer from BS-20 to BS-19 for one year after disciplinary proceedings confirmed inefficiency and misconduct, acting on directives from the Prime Minister.