Islamabad, May 18, 2025 – The Federal Board of Revenue (FBR) has intensified its efforts to crack down on high-risk taxpayers, particularly within Pakistan’s booming real estate and retail sectors.
Utilizing its advanced Compliance Risk Management (CRM) system, the FBR has initiated a targeted campaign to enhance revenue collection and ensure tax compliance from entities that have historically remained outside the tax net.
According to FBR sources, the tax authority is strengthening its enforcement capabilities by leveraging CRM analytics to pinpoint high-risk taxpayers. This includes identifying irregular tax behavior across the real estate, retail, and corporate sectors. The FBR aims to broaden its compliance net by increasing the number of tax auditors, launching mass notification drives, and expanding its integrated Point-of-Sale (POS) system to onboard more retailers.
The FBR’s enhanced strategy also focuses on scrutinizing suspicious import declarations. Special attention is being given to imports that display abnormal patterns, especially those involving smuggling-prone goods. A major area of concern remains the informal tobacco sector. In this regard, the FBR has rolled out multiple initiatives, such as mandating the use of bonded warehouses for acetate tow imports, banning its transit to Afghanistan, and restricting these imports to verified filter and tobacco manufacturers.
Officials added that CRM systems are now fully operational in the Large Taxpayer Offices (LTOs) located in Islamabad, Karachi, and Lahore, and have also been extended to Corporate Tax Units. These systems, currently powered by internal data, will soon incorporate third-party information to develop a fully automated framework for detecting high-risk taxpayers.
Despite underwhelming results from the Tajir Dost Scheme, recent increases in withholding tax on unregistered businesses have driven notable progress. FBR reports a 51% year-on-year increase in filer registrations among retailers and a 38% increase in those declaring positive tax liabilities as of January 2025.
To reinforce this momentum, the FBR has submitted a bill to Parliament that proposes abolishing the “non-filer” category entirely. If passed, it would restrict non-filers from major economic transactions, especially real estate and vehicle purchases—sectors often associated with high-risk taxpayers.
These robust compliance measures signal the FBR’s resolve to enforce taxation equity, curb evasion, and bring more high-risk taxpayers into the documented economy.