With stricter enforcement expected in tax year 2026, the Federal Board of Revenue may recover outstanding taxes not only from defaulters but also from individuals, businesses and institutions holding money on their behalf, under Section 140 of the Income Tax Ordinance.
Khuhro called on the federal government to allow Sindh to collect taxes if the FBR fails, highlighting the Sindh Revenue Board’s capacity and reaffirming the PPP’s commitment to protecting provincial rights under the 18th Amendment.
Pakistan has secured $700 million in new World Bank financing to reform its tax system, enhance budget transparency and support macroeconomic stability, despite limited progress from earlier revenue-focused lending.
The Peshawar High Court has suspended coercive tax recovery measures, including factory and bank account attachments, and issued notice to the FBR after observing violations of due process and settled law.
The FBR, with support from FC North and Loralai Police, confiscated nine non-customs-paid vehicles and various smuggled goods valued at Rs121.6 million during a targeted enforcement operation in Rakhni.
Federal Minister Muhammad Aurangzeb announced a working group to evaluate tax and regulatory proposals from telecom infrastructure and venture capital sectors, focusing on investment-friendly policies, digital connectivity, and innovation-driven economic growth.
The Pakistan Medical Association has strongly opposed the Federal Board of Revenue’s decision to engage 2,000 private auditors, warning that continued “harassment” of doctors could trigger a countrywide shutdown of private healthcare facilities.
The government announced that PIA’s privatization will take place on December 23, with tax incentives and cleared liabilities aimed at attracting investors. Bids from four consortiums are expected by the deadline.
A 12% month-on-month drop in November textile exports dragged Pakistan’s export growth to 2.73% for July–November FY26, despite moderate gains in knitwear, bedwear and garments.
Filing a tax return for 2025 is only the first step. Under Section 120, FBR treats a complete return as an assessment, subject to automated adjustments, time limits, and possible audit.