In a dramatic fiscal move, the Finance Bill 2025 has dropped a heavy hammer on the Pakistani public, proposing an enormous burden of over Rs600 billion in new taxes and enforcement measures.
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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 to collect banking information of high-risk individuals
Karachi, June 11, 2025 – In a significant development aimed at tightening the noose around tax evaders, the Federal Board of Revenue (FBR) has been granted sweeping powers to obtain information from banks concerning individuals deemed high-risk for tax purposes. This authority has been introduced through the Finance Bill 2025, which proposes a new section—175AA—to the Income Tax Ordinance, 2001.
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FBR’s tax collection target revised down to Rs11.90 trillion for FY25
Islamabad, June 10, 2025 – The federal government has officially revised downward the tax collection target for the Federal Board of Revenue (FBR) for the current fiscal year 2024-25, lowering it to Rs11.90 trillion from the earlier target of Rs12.97 trillion. This downward revision reflects the challenges faced in meeting revenue goals amid ongoing economic pressures.
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Finance Bill 2025: Salient Features of Federal Excise Duty
Islamabad, June 10, 2025 – The Federal Board of Revenue (FBR) has released a summary of significant changes to the Federal Excise Act, 2005, introduced through the Finance Bill 2025. These amendments are part of broader fiscal reforms aimed at improving tax compliance, curbing tax evasion, and streamlining enforcement mechanisms.
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Finance Bill 2025: Salient Features of Income Tax Ordinance
Islamabad, June 10, 2025 – As part of the ongoing fiscal reforms, the Federal Board of Revenue (FBR) has unveiled major amendments to the Income Tax Ordinance, 2001 through the Finance Bill 2025.
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Finance Bill 2025: Salient Features of Changes in Sales Tax Act
Islamabad, June 10, 2025 – The Federal Board of Revenue (FBR) has announced a comprehensive set of amendments to the Sales Tax Act, 1990 under the newly proposed Finance Bill 2025.
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Finance Bill 2025: Salient Features of Customs Duties
Islamabad, June 10, 2025 – The Federal Board of Revenue (FBR) has unveiled the salient features of the Finance Bill 2025, focusing extensively on reforms and amendments in the Customs sector under the Customs Act, 1969.
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FBR reports Rs1.80tr petroleum sales tax exemption in FY25
Islamabad, June 10, 2025 – The Federal Board of Revenue (FBR) has granted substantial sales tax exemptions on petroleum products during the fiscal year 2024–25, amounting to a staggering Rs1.80 trillion.
This figure marks a sharp increase of 34.23% compared to Rs1.34 trillion in sales tax exemptions recorded during the previous fiscal year, according to the recently released Economic Survey of Pakistan.
The FBR’s sales tax exemption policy continues to focus heavily on petroleum products to mitigate the impact of rising fuel prices on the general public. Of the total Rs1.80 trillion exemptions, approximately Rs1.50 trillion were provided on the local supply of petroleum products. This reflects a 19% growth over the Rs1.26 trillion in similar exemptions recorded in FY 2023–24.
More striking, however, is the increase in sales tax exemption at the import stage. The exemption granted on imported petroleum products surged by a massive 270%, reaching Rs300 billion in the current fiscal year, compared to just Rs81 billion in the prior year. This substantial growth underscores the government’s effort to maintain price stability by easing the tax burden on imported fuels.
Despite these generous sales tax exemptions, the government has pursued an aggressive strategy in collecting petroleum levies. According to official data released by the Ministry of Finance, petroleum levy collections reached Rs834 billion during the first nine months (July–March) of FY 2024–25, registering a 16% increase from the Rs720 billion collected during the same period last year.
The petroleum levy remains a vital source of non-tax revenue, helping the government bolster its fiscal capacity. Unlike sales tax, which is partially waived to provide relief, the petroleum levy is imposed directly and uniformly, ensuring consistent revenue generation.
The federal government’s dual strategy—offering sales tax exemption on petroleum products while simultaneously increasing petroleum levies—reflects a balancing act aimed at sustaining public relief without compromising on much-needed revenue. This approach continues to shape Pakistan’s fiscal policy in the energy sector as it seeks to maintain economic stability amid global price fluctuations.
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Two-decade-old tax cases finally resolved by IHC
ISLAMABAD, June 10, 2025 – In a major breakthrough for Pakistan’s judicial and revenue systems, the Islamabad High Court (IHC) has made significant strides in clearing a backlog of long-pending tax cases, some dating back over two decades. These cases had previously hindered the Federal Board of Revenue (FBR) from recovering more than Rs600 billion in outstanding dues.
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Economic Survey 2024–25 Highlights Major FBR Reforms
Islamabad, June 9, 2025 – The Economic Survey 2024–25 has spotlighted a sweeping series of reforms undertaken by the Federal Board of Revenue (FBR) to modernize tax collection, enhance digital infrastructure, and crack down on smuggling and evasion.
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