ISLAMABAD, May 5, 2025 – Prime Minister Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) and other relevant authorities to intensify their crackdown on tax evasion, under-invoicing, and commercial irregularities, stressing the need for strict legal action against those engaged in the sale and purchase of untaxed or illegally produced goods, especially counterfeit cigarettes.
During a high-level meeting held at the Prime Minister’s Office to review the performance and reform plans of the FBR, Shehbaz underscored that fighting tax evasion is essential for national financial stability and long-term economic development. He emphasized that robust tax enforcement, combined with structural reforms, would strengthen revenue generation and support essential public services without overburdening law-abiding citizens.
“The proposed amendments in the Income Tax Ordinance and Federal Excise Act are meant to remove legal and administrative barriers in tax recovery,” Shehbaz said. “At the same time, we must safeguard the rights of honest taxpayers and prevent undue harassment of legitimate businesses.”
The prime minister stressed the importance of transparency and digitalization in combating tax evasion. He was briefed on the implementation of digital tools like the Track and Trace System, which is already being applied to high-risk sectors including tobacco, cement, beverages, sugar, and poultry. These efforts are aimed at curbing evasion and plugging revenue leaks.
The meeting also reviewed the deployment of video surveillance and other digital monitoring strategies. Notably, provincial authorities have been authorized to confiscate illicit tobacco products, further strengthening the enforcement framework. A dedicated monitoring mechanism for the poultry sector is also being developed under the supervision of the FBR to ensure better oversight and compliance.
Shehbaz reiterated that tax reforms would not only ease the payment process but also broaden the tax base and reduce reliance on indirect taxes, thereby protecting the average citizen.
Among the attendees were Federal Ministers Azam Nazeer Tarar, Ahsan Iqbal, Muhammad Aurangzeb, the FBR chairman, and senior finance officials, who pledged their full support to the prime minister’s anti-evasion agenda.
This move signals Shehbaz Sharif’s determination to create a fairer and more accountable taxation system across Pakistan.