Karachi, June 12, 2025 – In a significant move, the Large Taxpayers Office (LTO) Karachi has been entrusted with the responsibility to evaluate and oversee the tax affairs of Facebook, the globally recognized social media and networking platform owned by the American tech giant Meta.
According to credible sources within the Federal Board of Revenue (FBR), the jurisdiction of M/s. Facebook Ireland Limited has officially been transferred from the Corporate Tax Office (CTO) Karachi to LTO Karachi. This shift comes in light of the platform’s substantial financial turnover and the complex nature of its taxation structure in Pakistan.
Officials from the FBR confirmed that Zone-III of LTO Karachi will now take charge of evaluating Facebook’s local financial operations for taxation purposes. The move is aligned with the FBR’s broader strategy of streamlining tax assessments for high-revenue entities under the specialized oversight of LTOs.
LTO Karachi, the premier revenue collection unit of the FBR, holds jurisdiction over large corporations and top-tier taxpayers. Its mandate includes not only managing tax compliance of major business entities but also overseeing the fiscal responsibilities of the country’s wealthiest individuals. With Facebook generating substantial digital advertising revenues from its operations within Pakistan, its inclusion under LTO’s purview is expected to enhance monitoring and improve tax compliance in the digital economy.
In a related development, FBR sources also disclosed that M/s. Engro Connect (Pvt) Limited has been reassigned to LTO Karachi, where Zone-V will now be responsible for evaluating its tax obligations.
This marks a critical step in LTO Karachi’s evolving role in regulating multinational and digital enterprises operating in Pakistan. Given Facebook’s expansive user base and advertising footprint in the country—particularly in urban centers like Karachi—this transition underscores the FBR’s intent to strengthen oversight of digital revenue streams.
With this jurisdictional change, Facebook’s tax affairs in Karachi will now fall under the more robust audit and compliance framework of LTO, reinforcing the state’s efforts to ensure transparency and fair taxation in the digital age.