The Federal Board of Revenue (FBR) has sealed a cigarette factory in Mardan and confiscated non-duty-paid cigarettes despite heavy political pressure, marking a first-of-its-kind action in Pakistan. The move follows the Prime Minister’s directives to curb illicit cigarette trade, with Rangers deployed at GLT units and over 200 monitors posted nationwide to strengthen enforcement.
The Punjab Revenue Authority (PRA) is advancing towards full digital transformation as Chairman Moazzam Iqbal Sipra and PITB Chairman Faisal Yousaf reviewed proposals to upgrade PRA’s monitoring dashboard and database. Sipra said an integrated e-database and phased digitisation of sector-wise data will improve taxpayer facilitation and strengthen the revenue system.
The FTO has warned the FBR Chairman about serious administrative lapses by senior officers, urging prompt action to prevent future inefficiency and maladministration.
Section 147 of the Income Tax Ordinance forces non-salaried individuals earning just Rs83,334 per month to pay quarterly advance tax — a requirement critics say disproportionately hurts vulnerable groups. Stakeholders are urging the FBR to raise the threshold to Rs2.5 million to ease financial stress without affecting revenue flow.
Tax experts warn that the Federal Board of Revenue’s digitalisation drive lacks real impact without a clear strategy to bring non-filers into the tax net. While return filings have increased, experts say enforcement and institutional upgrades are essential for meaningful revenue growth.
The Federal Board of Revenue (FBR) is preparing substantial tax relief measures for the salaried class in the next budget on the directives of Prime Minister Shehbaz Sharif. FBR Chairman Rashid Mahmood Langrial said formal work has begun on proposals to ease the tax burden, while the government also plans a gradual reduction and eventual elimination of the super tax on major corporations.
The Federal Constitutional Court is set to open hearings on December 1 on petitions challenging the Super Tax levied under Sections 4B and 4C. A three-judge bench will review the FBR’s appeals against High Court decisions striking down parts of the tax. In a separate proceeding, the FCC will take up the Arshad Sharif murder case on December 3 under its new suo motu jurisdiction.
Pakistan’s tax shortfall grew to Rs428 billion during July–November FY2025-26, as the FBR collected Rs4.715 trillion against a Rs5.14 trillion target. Income and sales tax remained the biggest contributors to the gap, while November alone saw a Rs157 billion shortfall. The FBR is also operating without a permanent Inland Revenue Operations chief as businesses continue to seek relief from rising tax pressures.
Finance Minister Muhammad Aurangzeb highlighted the importance of comprehensive tax reform to strengthen Pakistan’s capital markets. At the inaugural CMDC meeting, he called for coordinated action by SECP, SBP, and the Finance Division to enhance investor incentives, transparency, and market competitiveness.
FBR Chairman Rashid Mehmood Langrial has unveiled the government’s plan to boost the tax-to-GDP ratio to 18% by FY28, driven by digitalisation and improved enforcement. Speaking at a Pakistan Business Council seminar, he detailed tax evasion patterns, sectoral challenges, and the need for rationalising taxes—while reiterating that no new amnesty schemes will be introduced.