Karachi, June 3, 2025 – In a powerful and game-changing proposal ahead of the federal budget 2025-26, the Institute of Chartered Accountants of Pakistan (ICAP) has sounded the alarm: If the FBR wants more taxpayers, it must start by honoring the ones it already has.
The Federal Board of Revenue (FBR) has long struggled to bring more people into the tax net. However, ICAP now argues that the real barrier lies not in policy alone, but in the disheartening treatment of current taxpayers. According to the Institute, many individuals prefer to remain non-filers—despite higher tax penalties—because of the bureaucracy and burdens faced by those who do comply. In short, instead of being rewarded, existing taxpayers are disillusioned, ignored, and even punished.
The ICAP’s explosive recommendations include an overhaul of how taxpayers are treated. Top of the list: implementation of the self-assessment scheme in its true spirit, audit selection only through risk-based automated tools, and rationalizing Pakistan’s often excessive tax rates.
The FBR has run media campaigns in the past to promote filing, and schemes like POS prize incentives have shown promise. But ICAP says it’s time to go beyond awareness—to celebration and recognition. The FBR is now being urged to run fresh campaigns not just promoting filing, but showcasing the benefits and status of being a registered, responsible taxpayer.
The bold incentive ideas include:
• National recognition for Pakistan’s top 100 to 1,000 taxpayers
• VIP-style perks: priority services at airports, hospitals, NADRA, banks, and government offices
• Tax rebates for newly registered businesses and listed companies
• Reduced tax rates for professionals (doctors, engineers, lawyers, accountants)
• Free medical care, education perks for children, and enhanced Sehat Card insurance coverage
• Discounted toll tax and airfares
• Unemployment allowances for compliant taxpayers
The proposal even suggests categorizing taxpayers based on their annual contributions over the past three years to determine privilege tiers.
ICAP’s message is clear: If the FBR wants to expand the tax base, it must flip the script—from punishment to pride, from scrutiny to status. Making taxpayers feel like national contributors, not just numbers on a ledger, could spark the very revolution the tax system needs.