Islamabad, December 31, 2025 — The Federal Board of Revenue (FBR) has initiated a comprehensive scrutiny exercise targeting exporters after observing a significant decline in their declared taxable income for the tax year 2025. This move aims to ensure compliance with updated tax regulations and curb potential revenue losses.
According to FBR analysis, a notable number of exporters—including individuals, Associations of Persons (AOPs), and companies—substantially reduced their reported taxable income following the amendment to Section 154 of the Income Tax Ordinance, 2001, introduced through the Finance Act, 2024. The amendment transformed the taxation framework for export proceeds, shifting from a final tax regime to a minimum tax system, creating an adjustment in declaration practices among exporters.
In response, the FBR has directed all Inland Revenue field offices to closely examine the income declarations of major exporters within their jurisdictions. Authorities are instructed to identify abnormal reductions, inconsistencies, or unusual patterns in the reported income. Where taxable income appears substantially lowered without valid justification, the FBR may initiate appropriate legal action in accordance with existing tax laws.
The board emphasized that this large-scale scrutiny is part of its ongoing efforts to strengthen tax compliance, ensure transparency, and protect government revenue. Exporters are advised to maintain accurate documentation and justify any variations in their declared income to avoid potential penalties.
Market analysts note that this move reflects the FBR’s heightened focus on exporters’ declarations following legislative changes and highlights the government’s determination to monitor adjustments in taxable income after significant regulatory reforms. Stakeholders are expected to closely follow FBR updates as enforcement actions progress in early 2026.