Federal Board of Revenue (FBR) is grappling with an escalation in public grievances, with complaints surging by 550% in the first four months of 2025 compared to the previous year. The sharp rise highlights persistent issues within the tax collection body, despite ongoing reform efforts.
According to reports, the Federal Tax Ombudsman (FTO) received approximately 13,000 complaints against the FBR between January and April 2025. This figure represents a significant jump from the roughly 2,000 complaints lodged during the corresponding period in 2024. Historically, the FTO has typically handled around 2,000 complaints every four months, with annual totals usually peaking near 2,500.
The deluge of complaints details a broad spectrum of alleged misconduct and procedural issues. Common grievances include accusations of highhandedness by tax officials, the issuance of illegal notices, unwarranted bank account attachments, issues involving fake or “flying” invoices, alleged hacking of sales tax accounts, and various violations of established procedures. While the FTO has reportedly resolved over 6,000 of the received cases, officials are said to be concerned by the sheer volume and rapid pace of new complaints.
FBR Cites Pressure to Meet Targets
In response to the growing number of complaints, FBR officials have reportedly attributed the aggressive tactics to the immense pressure they face in meeting stringent revenue collection targets. The FBR’s initial annual tax target was set at Rs 12,970 billion, later revised slightly to Rs 12,332 billion following discussions with the International Monetary Fund (IMF). Senior FBR management is said to have heavily pressured field offices to achieve demanding monthly and quarterly collection goals, which observers suggest may have led to more forceful collection methods.
Under conditionalities agreed with the IMF, the FBR is also tasked with increasing Pakistan’s tax-to-GDP ratio to 10.6%. However, analysts point out the challenging economic environment and declining growth in key sectors that typically generate significant tax revenue. They warn that this discrepancy between ambitious fiscal targets and the prevailing economic conditions could exacerbate public dissatisfaction unless the government and FBR implement alternative mechanisms for resolving tax disputes and reduce administrative friction.
