Key Tax Relief for Corporates as Tribunal Limits Minimum Tax Application
A recent decision by the Appellate Tribunal Inland Revenue has delivered an important message for businesses across Pakistan: minimum tax cannot be enforced where there is no actual tax payable. The ruling, which favored a banking company, is likely to influence future tax disputes and provide greater clarity on how certain provisions should be applied. […]
PSX Tumbles Amid Geopolitical Uncertainty Over Possible US–Iran Talks
Pakistan’s stock market faced a sharp setback as uncertainty surrounding potential negotiations between the United States and Iran in Islamabad unsettled investors. The benchmark KSE-100 Index ended the session deep in the red, reflecting widespread caution across the trading floor. From the opening bell, selling pressure dominated market activity. The index slipped over a thousand […]
Budget 2026–27: A Push for Tax Relief and Broader Participation
As Pakistan moves closer to unveiling its Budget for FY2026–27, early discussions indicate a policy shift aimed at easing the burden on salaried individuals while bringing more sectors into the formal tax system. The approach reflects a long-standing concern: too few taxpayers are carrying too much of the load. During ongoing consultations, the government has […]
FBR Introduces 7-Day Deadline for Tax Exemption Certificates: A Boost for Builders and Developers
In a move aimed at easing financial pressure on Pakistan’s construction sector, the Federal Board of Revenue (FBR) has introduced a strict seven-day deadline for issuing withholding tax exemption certificates to builders and developers operating under the special tax regime. The directive, issued through a recent circular for the 2025–26 tax year, brings much-needed clarity […]
Punjab’s Path to Progress: New Reforms for a Stronger Economy
Punjab is taking a serious step toward financial modernization. In a busy Tuesday session, the Punjab Assembly’s Standing Committee on Finance cleared the path for two major legislative updates designed to tighten the province’s tax net and upgrade its crumbling infrastructure. From synchronizing with federal systems to chasing down overdue audit recoveries, here is what […]
Pakistan Ensures Stable Fuel Supplies Amid Global Market Volatility
In a proactive move to safeguard the nation’s energy security, the Pakistani government recently conducted a thorough review of the country’s petroleum stock levels. The meeting, led by Finance Minister Muhammad Aurangzeb, brought together key federal ministers and senior officials to assess the current fuel supply situation and plan for potential challenges in the international […]
Pakistan Sees Steady Growth in New Company Registrations in February 2026
The corporate landscape in Pakistan continues to expand, with the Securities and Exchange Commission of Pakistan (SECP) recording 3,444 new company registrations in February, bringing the total number of registered companies in the country to 287,049. Private Sector Remains the Driving Force Private limited companies led the new incorporations, accounting for 59% of all registrations, […]
FBR Issues SOP for Implementation of Section 37A of the Sales Tax Act
The Federal Board of Revenue (FBR) has introduced a Standard Operating Procedure (SOP) outlining how tax officials should exercise the powers granted under Section 37A of the Sales Tax Act, 1990. The move is aimed at ensuring that investigations into tax fraud are carried out in a structured and legally sound manner across the country. […]
Pakistan’s Revenue Struggles Deepen as FY26 Tax Shortfall Reaches Rs430 Billion
Pakistan’s fiscal pressures are mounting as the Federal Board of Revenue (FBR) reports a widening revenue gap during the first eight months of fiscal year 2025–26. Despite intensified enforcement efforts and forced recoveries, the tax authority has fallen significantly behind its target. The Growing Gap From July to February, the FBR collected Rs8,120 billion, missing […]
OPEC+ Moves Carefully as Middle East Tensions Shake Oil Markets
Global oil markets are once again on edge. The alliance known as OPEC+ has agreed in principle to raise crude production slightly, even as conflict involving Iran disrupts shipments across one of the world’s most vital energy corridors. The decision highlights a delicate balancing act: calming nervous markets without overcommitting supply in an increasingly unstable […]
Government Moves to Activate FBR Integrity Cell Under IMF Reform Commitments
In a significant step toward strengthening tax administration oversight, the federal government has committed to the International Monetary Fund (IMF) that it will fully operationalize and reinforce internal accountability mechanisms within the Federal Board of Revenue (FBR). The reform centers on reviving and empowering the Integrity Management Cell (IMC), a body designed to address corruption […]
Every Sixth Tax Rupee Is Propping Up SOEs — A Fiscal Wake-Up Call
Pakistan’s public finances are under mounting pressure, and the latest FY2025 Aggregate Report on State-Owned Enterprises (SOEs) delivers a sobering message: for every Rs6 collected in taxes, Rs1 is being redirected to support loss-making SOEs. At a time when citizens are already grappling with inflation and higher taxation, this finding raises serious questions about efficiency, […]
PRA Steps Up Action Against Habitual Tax Defaulters
The Punjab Revenue Authority (PRA) has intensified its efforts to bring persistent tax defaulters into the compliance net, signaling a stronger and more structured approach to tax enforcement across the province. The focus is particularly on individuals and businesses that have repeatedly failed to pay their services tax despite prior notices and opportunities to comply. […]
FBR Adds Buyer Verification Status to Sales Tax Returns: What Businesses Need to Know
The Federal Board of Revenue (FBR) has taken another important step toward strengthening Pakistan’s tax compliance framework by introducing a Buyer Verification Status field in Annexure C of the monthly sales tax return. This change is part of FBR’s ongoing efforts to improve transparency, enhance data accuracy, and reduce discrepancies in sales tax reporting. What […]
Understanding FBR’s Power to Establish Customs Stations Across Pakistan
Pakistan’s customs system is governed by a legal framework that gives the Federal Board of Revenue (FBR) wide-ranging authority to manage how and where goods enter, exit, and move within the country. One of the most important powers under this framework is the ability to declare any location in Pakistan as a customs station, a […]
Salaried Taxpayers Carry Pakistan’s Tax Burden While Other Sectors Lag Behind
Pakistan’s tax system continues to rely heavily on salaried individuals, once again highlighting deep structural imbalances in revenue collection. Recent figures released by the Federal Board of Revenue (FBR) show that salaried taxpayers contributed an impressive Rs266 billion in income tax during the first half of the current fiscal year — a figure that far […]
FBR Moves to Centralize Oversight of Major Corporations
The Federal Board of Revenue (FBR) has taken a decisive step to strengthen Pakistan’s tax administration by bringing 63 large companies under its direct supervision. The move is designed to enhance scrutiny of major taxpayers, improve compliance, and ensure greater transparency in the collection of federal taxes. By assuming direct jurisdiction over these high-value cases, […]
FBR Takes Firm Action Against Negligence in Sugar Mill Monitoring
The Federal Board of Revenue (FBR) has once again signaled that it means business when it comes to discipline and accountability. In a recent move, the tax authority suspended six officials who were found absent from their assigned duties at sugar mills without proper authorization. These officials had been deployed under Section 40B of the […]
Questions Raised Over FBR’s Accountability After Ignoring FTO Directive
The Federal Board of Revenue (FBR) is facing renewed scrutiny after its Inland Revenue (Operations) Wing failed to comply with a lawful order issued by the Federal Tax Ombudsman (FTO) in a case involving a corporate taxpayer. The incident has sparked concerns about compliance, transparency, and respect for oversight within the tax administration. According to […]
Understanding Pakistan’s E-Invoicing System
Understanding Pakistan’s E-Invoicing System: A Guide for Businesses In a bid to modernize tax administration and enhance transparency, Pakistan has introduced a new e-invoicing system through SRO No. 69(I)/2025. Pakistan’s e-invoicing system represents a significant shift in how businesses report sales transactions and comply with tax regulations. Whether you’re a retailer, wholesaler, importer, or manufacturer, […]