Karachi, May 11, 2025 — The Federal Board of Revenue (FBR) has been strongly urged to implement compulsory income tax return filing for professionals across various sectors, particularly those affiliated with formal associations and professional bodies such as bar councils and trade organizations.
As part of the proposals submitted for the upcoming federal budget 2025–26, the FBR has been advised to expand the tax base by enforcing return filing for all service providers and professionals, including doctors, private hospitals, lawyers, painters, fashion designers, property dealers, interior designers, private teachers, educational institutes, salons, and coaching centers.
The proposals recommend that FBR should make tax compliance a prerequisite for annual license or registration renewals. For example, doctors should be required to submit tax returns to the Pakistan Medical Association (PMA), lawyers through their respective bar councils, and tax consultants via the Institute of Chartered Accountants of Pakistan (ICAP). Hospitals would also be required to restrict non-filer doctors from practicing or providing consultancy services within their premises.
In a bid to improve documentation and revenue collection, the proposals suggest mandatory integration of the Point of Sale (POS) system for professionals offering taxable services. This would ensure all transactions are digitally recorded and invoices are generated in real time, ultimately reducing tax evasion and broadening the tax net. The FBR has also been encouraged to conduct widespread awareness campaigns to educate professionals about the importance and benefits of POS invoicing.
Another key suggestion involves issuing digital identification numbers to small service providers such as plumbers, electricians, and carpenters. These IDs would link them to the tax system and promote financial inclusion, helping bring Pakistan’s large informal economy under formal oversight.
Professionals in sectors such as education, healthcare, legal services, salons, and coaching often operate outside the tax system. By ensuring these professionals are identified, regulated, and taxed, the FBR can shift the burden away from salaried individuals who currently make up a large share of the taxpaying population.
Effective enforcement of professional tax return filing and POS integration will enhance transparency, improve policy formulation, and support sustainable economic development. The FBR’s role in implementing these measures is crucial for strengthening national revenue and achieving long-term fiscal stability.