FBR reported a record rise in income tax return filings for Tax Year 2025, reaching 8.63 million taxpayers by October 31. However, the number fell to 6.23 million on November 1 after FBR removed those who failed to file returns for 2024. The data highlights a 17.6% increase in filings and a 15% jump in tax payments, signaling improved compliance and public trust in Pakistan’s tax system.
The Federal Investigation Agency (FIA) has cancelled the FIR against former FBR chairman Syed Shabbar Zaidi in a case involving alleged unauthorised tax refunds of PKR 16 billion. The case, which involved firms from the banking, cement, and chemical sectors, has been classified as “C-Class” by FIA Karachi, clearing Zaidi of charges and sparking renewed debate over tax governance and accountability in Pakistan’s revenue system.
As glitches in the FBR’s IRIS portal persist, tax bars urge Prime Minister Shehbaz Sharif to extend the return filing deadline to November 30, 2025 — marking what could become the third extension in Pakistan’s turbulent tax season.
SRB has extended the deadline for filing Agricultural Income Tax returns to November 15, 2025—the second extension granted to facilitate taxpayers and ensure smooth compliance through its enhanced online filing system.
FBR data shows that fifteen major sectors contributed 57.3% of Pakistan’s domestic sales tax in FY25, with electrical energy alone accounting for nearly a quarter of total revenue. Domestic sales tax collection rose 32.4% to Rs1.62 trillion, driven by industrial growth and higher electricity tariffs.
The FIA has booked ex-FBR chairman Shabbar Zaidi over allegations of authorising Rs16 billion in illegal tax refunds to firms previously linked to his audit firm, accusing him of misconduct and conflict of interest during his tenure in the PTI government.
FBR has installed point-of-sale (POS) systems at 40,000 retail outlets during FY2024–25, expanding coverage to 38 percent of Tier-1 retailers. The initiative, coupled with legal settlements worth Rs255 billion and stronger enforcement, helped raise Pakistan’s tax-to-GDP ratio to 10.3 percent — the highest in five years.
FBR has made digital surveillance mandatory for sugar mills, barring them from clearing any production without verification through video monitoring or Digital Eye software. Mills must install Production Monitoring Equipment (PME) before the new crushing season begins to ensure transparency and prevent tax evasion.
Tax experts welcomed FBR’s decision to set up a committee for resolving tax return issues but called for extending the filing deadline by 7–15 days, saying the late formation leaves little time for taxpayers to seek assistance.
Just days before the October 31 deadline, the FBR has amended the 2025 income tax return form to mandate CNIC details for all inflows and outflows — a move that tax experts say has disrupted the filing process and deepened frustration among taxpayers.