Islamabad – June 3, 2025: The Federal Board of Revenue (FBR) has achieved a major legal victory as the Islamabad High Court (IHC) approved tax recovery of over Rs26 billion from Bahria Town.
This marks a significant milestone in the FBR’s ongoing efforts to recover outstanding taxes from major corporations.
According to official sources, the court decision came after years of litigation. The case against Bahria Town (Pvt) Ltd had been pending for more than two and a half years in various appellate forums. The IHC ruling has now cleared the way for the FBR to move forward with the recovery of Rs26.45 billion—the largest amount among the recent cases.
The FBR has also secured favorable rulings in two other corporate tax disputes, which together amount to an additional recovery of Rs9.7 billion. This brings the total approved recovery to Rs36.14 billion from three major cases. Bahria Town’s case alone represents nearly three-fourths of that amount.
These wins are the result of a focused legal campaign launched under the direct guidance of Prime Minister Shehbaz Sharif. He had earlier instructed the FBR to aggressively pursue long-standing cases that had delayed much-needed tax recovery. Many of these cases, involving trillions of rupees, are still stuck in the courts, but the recent rulings offer a strong precedent.
Officials at the FBR said that the improved legal strategy and close coordination with the judiciary have helped turn the tide. Bahria Town’s case in particular had been closely watched, and the favorable decision is being seen as a major breakthrough in boosting tax compliance among large real estate firms.
These developments show that the government is serious about strengthening revenue collection and enforcing tax laws across all sectors, including powerful players like Bahria Town. The FBR’s enhanced legal performance is also expected to encourage quicker recovery in other high-value cases.
This progress is being welcomed as a strong sign that the FBR is now better equipped to enforce its authority and carry out major recoveries. With the court’s backing, Bahria Town will now be required to fulfill its tax obligations, further reinforcing the rule of law in Pakistan’s tax system.