Pakistan’s tax authorities report that almost 2.26 million of 5.9 million income tax returns for 2025 are nil-returns, revealing a persistent gap between declared income and actual wealth and underscoring challenges in enforcement and tax base expansion.
The Pakistan Medical Association has condemned a recent FBR report on doctors’ tax filings, terming it misleading and discriminatory, and has urged authorities to withdraw it and address non-compliance across all sectors.
The Punjab Revenue Authority will launch the Large Taxpayer Unit in Lahore within two months and establish a training wing for revenue officers, while enhancing online systems and enforcement to improve transparency and taxpayer services.
The Federal Board of Revenue, through RTO Peshawar, has seized a massive quantity of non-duty-paid unmanufactured tobacco in Mardan, averting a potential Rs19 billion loss to the national exchequer and disrupting illegal cigarette manufacturing.
Over 73,000 doctors in Pakistan have not filed income tax returns, prompting the FBR to target the medical sector for evasion and under-reporting, highlighting a serious compliance crisis among high-earning professionals.
Amid emerging revenue gaps, Pakistan has shared a backup fiscal plan with the IMF, including proposed excise hikes, new taxes on high-value products, and spending cuts, to prevent a mid-year mini-budget and support fiscal sustainability.
The IMF has revised Pakistan’s FBR revenue target for FY2025-26 to Rs. 13.98 trillion, down from Rs. 14.3 trillion, during its Second Review under the Extended Fund Facility. While acknowledging progress with a 12% tax-to-GDP ratio, the IMF noted structural weaknesses and slower economic activity. The FBR has launched audits, digital invoicing, POS expansion, and public awareness campaigns to boost revenue, with continued reforms critical for fiscal stability and increased development spending.
Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue to step up efforts to bridge a revenue shortfall of over Rs400 billion recorded in the first five months of the current fiscal year. Chairing a weekly review meeting, the premier instructed authorities to broaden the tax net, reduce customs clearance times through technology, curb smuggling and illegal cigarette production, and ensure timely sales tax refunds.
The Lahore High Court has instructed the Federal Secretary Establishment Division to include the name of BS-21 FBR officer Asim Majeed in the high-powered promotion board for BS-22. The court noted that several junior officers had been promoted ahead of him, and ordered that his case be evaluated strictly according to law and Supreme Court judgments.
A planned shutter-down strike by traders in Islamabad and Rawalpindi was averted following a timely intervention by Zubair Bilal, FBR Member (Inland Revenue – Operations). Traders had raised concerns that mandatory POS registration would increase compliance costs, particularly for small shopkeepers. After discussions at FBR Headquarters, the Traders Action Committee called off the strike, agreeing to continue dialogue for a resolution.