RTO Peshawar has seized undeclared machinery from a Mardan cigarette unit allegedly used to process tobacco for illicit production. The raid uncovered equipment capable of producing up to 7,000 kg of tobacco daily, highlighting a major revenue risk and prompting prosecution.
Law Minister Azam Nazeer Tarar firmly defended FBR’s legal authority to obtain taxpayers’ bank information, saying the practice is fully protected by law and aligned with global AML regimes. He stressed that financial scrutiny is essential for compliance as the Senate referred the matter for further review amid privacy concerns.
Pakistan Customs intercepted 9,455 ecstasy (MDMA) tablets valued at $1 million concealed in speakers and LED lamps in Karachi. The FBR confirmed an investigation is underway to identify recipients and facilitators. Authorities continue to clamp down on illegal drugs, following recent record seizures by Pakistan Navy.
Punjab Revenue Authority (PRA) has found numerous housing societies, builders, and over 100 farmhouses in Lahore non-compliant with tax regulations. Discrepancies were also discovered in hotels, restaurants, and event management businesses. Chairman Moazzam Iqbal Sipra ordered immediate notices, thorough record scrutiny, and strict enforcement actions against defaulters.
Punjab Revenue Authority has issued a stern warning to unregistered businesses, calling for immediate registration and strict compliance. Chairman Moazzam Iqbal Sipra directed enforcement measures, recovery of pending taxes, and integration of electronic food platforms into the central e-IMS dashboard, urging consumers to verify receipts via the PRA Sahulat App.
The federal government, led by Senator Ishaq Dar, has approved a plan to revive Pakistan’s cotton sector amid a sharp drop in production. The plan includes FBR-managed cess collection, stronger seed regulation, and funding for R&D. Industry participation will be ensured through majority representation on the overseeing council, with an MoU formalizing the process and focusing on sustainable sector growth.
The federal government has pressed provinces to raise their revenue share during the 11th NFC discussions, warning that the fiscal pressures caused by the 7th NFC Award continue to squeeze defence and development spending. The Centre proposed adding 5% of GDP—about Rs6.5 trillion—to national revenues over three years and called for stronger provincial taxation on property, agriculture income and services.
The Federal Tax Ombudsman has directed the FBR to ensure international airlines file their cargo manifests directly in the Customs WeBOC system, citing serious loopholes that enable cargo pilferage and fraudulent clearances at airports. The FTO urged immediate integration of airline data with WeBOC and automatic red-flagging of consignments cleared without proper Goods Declarations.
The IMF team met the Federal Tax Ombudsman to examine FBR’s maladministration, including refund delays, audit irregularities, and repeated illegal notices. FTO officials reported that of 35,179 complaints received in 2025, 24,700 were upheld, highlighting systemic issues in tax administration.
Chief Commissioner Inland Revenue RTO Faisalabad Dr. Shah Muhammad Khan told the FCCI business community that taxes are essential for national stability and that most challenges can be solved through mutual understanding between taxpayers and FBR. He assured that delays in registration, refund processing, and audit matters are being addressed, while FCCI leaders highlighted concerns over sales tax notices, exemption certificates, and the use of Sections 38B and 40B.