If you have concealed income, underreported earnings, or forgotten to declare certain assets, Tax Year 2026 could bring serious consequences. The Federal Board of Revenue (FBR) has tightened enforcement under the updated Income Tax Ordinance, 2001, keeping Section 111 (Unexplained Income or Assets) fully applicable.
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FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.
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FBR Approves Tax Credit for Video Analytics Installation in Textile Spinning Units
The Federal Board of Revenue (FBR) has announced a new tax credit facility for textile spinning units to offset expenses incurred on the installation of video analytics systems, aimed at reducing costs for the sector while ensuring electronic monitoring of production.
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Senate seeks details of corruption complaints against FBR officials
The Senate has initiated a formal inquiry into alleged corruption within the Federal Board of Revenue (FBR), directing the tax authority to submit comprehensive details of complaints received against its officials since July 2023.
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FBR uncovers Rs19 billion potential tax evasion in tobacco sector
Islamabad, December 13, 2025 — Pakistan is grappling with a growing challenge of illicit trade in the tobacco sector, which continues to undermine the national economy and cause heavy losses to the public exchequer. The unchecked movement, storage, and use of non-duty-paid unmanufactured tobacco— the primary raw material for cigarette production— has emerged as a major source of large-scale evasion of Federal Excise Duty (FED) and other applicable taxes.
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What Is a Controlled Foreign Company (CFC) Under Income Tax Ordinance, 2001?
Updated for Tax Year 2026: Pakistan has strengthened its international tax framework by introducing Controlled Foreign Company (CFC) rules under Section 109A of the Income Tax Ordinance, 2001.
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RTO Abbottabad dismantles major illegal cigarette factory, seizes MK-8 machines
Islamabad, December 12, 2025 – In a significant enforcement action against the illicit tobacco trade, the Regional Tax Office (RTO) Abbottabad has dismantled a fully operational illegal cigarette manufacturing facility, seizing high-capacity MK-8 cigarette-making machines, packing units, stamping and bundle-making equipment, along with substantial quantities of raw tobacco, packaging materials, and non-duty-paid cigarettes.
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PM Shehbaz directs FBR to expedite sales tax refunds, strengthen tax compliance
Islamabad, December 11, 2025 – Prime Minister Shehbaz Sharif on Thursday instructed the Federal Board of Revenue (FBR) to accelerate the release of sales tax refunds, aiming to improve liquidity for businesses and boost economic activity across the country.
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Taxation Principles for Permanent Establishments in Pakistan: Non-Residents Tax Year 2026
Islamabad, December 12, 2025 – The Federal Board of Revenue (FBR) has clarified the principles of taxation for permanent establishments (PEs) of non-resident persons operating in Pakistan under Section 105 of the Income Tax Ordinance, 2001 for the tax year 2026.
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FBR amends rules for active taxpayers of AJK and GB
Islamabad, December 12, 2025 – The Federal Board of Revenue (FBR) has introduced significant amendments to the Income Tax Rules, 2002, aimed at streamlining the process of recognizing active taxpayers belonging to Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB). The draft amendments were issued through SRO 2423(I)/2025 on December 11, 2025.
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FBR to launch digital tax operations training for nearly 1,100 Officers
Islamabad, December 11, 2025: The Federal Board of Revenue (FBR) is preparing to launch an extensive training program aimed at equipping its officers with advanced skills in digital tax operations, data analytics, and modern compliance systems.
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