FBR Chairman Rashid Mahmood Langrial has confirmed a Rs275 billion revenue shortfall in the first four months of FY2025–26 but ruled out new tax measures, citing improved compliance, a 10.33% tax-to-GDP ratio, and 5.9 million return filers.
The FBR has created seven Regional Lifestyle Monitoring Teams to identify taxpayers whose social media lifestyles don’t match their declared income. The initiative targets influencers, businesspersons, and professionals showing signs of undisclosed wealth.
FBR has clarified that the Active Taxpayers List (ATL) for 2025 will be determined on the basis of returns filed for Tax Year 2024, rejecting reports about the mass inactivation of taxpayers. The FBR confirmed that those who filed timely extension applications have been automatically granted a 15-day extension.
KTBA has accused the Federal Board of Revenue (FBR) of gross mismanagement and legal breaches during the 2025 tax return filing season. KTBA President Ali A. Rahim said the FBR admitted its system’s failure by forming a technical committee just days before the deadline, yet still refused to grant an extension — a move he called “unjust and unlawful
FTO has declared that tax authorities are not legally bound to issue prior notice before adjusting sales tax dues against income tax refunds. The FTO held that Section 170(3)(b) of the Income Tax Ordinance, 2001, makes such adjustments mandatory, dismissing claims of maladministration by the tax department.
The federal government is considering increasing the tax rate on ATM and bank withdrawals for non-filers from 0.8% to 1.5% to generate around Rs30 billion in additional revenue. The measure, discussed with the IMF, seeks to bridge a Rs200 billion revenue gap while encouraging more people to file tax returns.
The Federal Board of Revenue has declared thousands of taxpayers inactive without deciding on their pending extension applications, drawing criticism for violating procedural fairness and disregarding FTO directives on return filing.
Prime Minister Shehbaz Sharif has lauded the FBR for setting a historic record of 5.9 million tax returns, terming it a sign of growing public confidence in government reforms. He reaffirmed his commitment to transparency and tax facilitation, even as the FBR fell Rs274 billion short of its revenue target for the July–October period of FY2025–26.
Punjab Revenue Authority has confiscated the records of a popular restaurant chain accused of tax evasion and announced a province-wide crackdown on unregistered businesses starting November 1, 2025.
Despite a record surge in tax filings, the FBR missed its FY26 collection target by Rs274 billion in July–October, with October alone falling Rs76 billion short. Individual taxpayers and outreach campaigns boosted compliance, while IMF-linked contingency measures loom.