Prime Minister Shehbaz Sharif has directed a phased elimination of tax evasion, prioritising tobacco, tiles and other key sectors. In a review meeting with the FBR, he pushed for stronger administrative measures and faster reform implementation to bolster economic stability and meet development goals.
The government is in the final stages of overhauling FBR’s whistleblower reward system, Minister of State for Finance Bilal Azhar Kayani told the National Assembly on Friday, emphasising that AI-driven audits, digital invoicing and risk-based enforcement are central to expanding the tax base and curbing evasion. He said the Prime Minister reviews FBR reforms weekly and that new tools and transparency measures aim to protect honest taxpayers while tightening action against evaders.
The FBR has announced a sharp rise in enforcement-driven revenue, collecting Rs. 874 billion in FY2024–25 compared to Rs. 105 billion last year. Real-time monitoring of key sectors, expanded POS integration, legal settlements, and improved Customs procedures played a major role in boosting compliance and transparency.
The FPCCI hosted a key consultative meeting with SRB Chairman Dr Wasif Ali Memon to resolve pressing tax issues affecting the services sector. FPCCI President Atif Ikram Sheikh raised concerns over refund delays, double taxation, and abrupt policy changes, while SRB assured swift refunds, simplified appeals, and consideration of reducing SST on indenters to one percent.
The Supreme Court of Pakistan has ruled in favour of Coca-Cola Pakistan Limited in a long-running tax dispute, declaring that expense allocation can be done on any reasonable basis and that FBR’s apportionment rules are not mandatory, setting a key precedent for corporate taxpayers.
FBR has restructured the Single Portal Committee to launch a unified platform for sales tax return filing across Pakistan. The committee, comprising senior FBR and provincial tax officials, will oversee operational readiness, software development, and harmonisation of tax procedures nationwide.
The SRB has announced that November 15, 2025, is the final deadline for filing Agricultural Income Tax (AIT) returns. Taxpayers are urged to use SRB’s digital filing system and complete submissions on time, as no further extensions will be granted.
FBR has initiated a nationwide AI-driven audit of more than seven million income tax returns. Returns showing tax payments below 25 percent will be flagged for scrutiny, with 8,000 Inland Revenue officers and 4,000 auditors leading the process. The audit will use AI and digital tools to identify discrepancies and strengthen transparency in Pakistan’s taxation system.
The Federal Board of Revenue (FBR) has ordered all tobacco producers to install IP-based CCTV cameras for real-time monitoring of production. The move, approved by Member IR Operations, aims to strengthen oversight, prevent tax evasion, and ensure accurate reporting of output under the Sales Tax Act.
Despite the government’s push for a cashless economy, less than 0.7 million retailers are currently linked to digital payment modes, far short of the new target of 2 million by June. PM Shehbaz Sharif has directed authorities to intensify efforts as currency in circulation continues to rise and traders resist broader tax compliance.