In a sweeping legislative update, the government has ushered in a new era of taxation through the Finance Act 2025, reshaping rules to tighten compliance, expand the formal economy, and encourage digital transactions.
The Federal Board of Revenue’s latest circular mentioned detailed insights into these reforms, which affect salaried individuals, pensioners,...
The Federal Board of Revenue (FBR) will notify a date for imposing restrictions on the economic transactions of “ineligible persons”, who would fail to declare sources of income/investments in their wealth statements.
Explaining the Finance Act 2025, the FBR has issued income tax circular (1 of 2025) here on Monday.
According...
The federal Board of Revenue (FBR) will disallow 50 percent business expenditure in cases where a person makes a sale of Rs 200,000 or above on a single invoice and payment is not received through banking channel or digital means.
According to an income tax circular issued by the FBR...
The Federal Board of Revenue (FBR) has relaxed some major enforcement provisions of the Finance Act 2025 including provisions of arrest in tax fraud cases and cash deposits in the bank account of the seller would now be considered through banking channels.
The FBR has also announced that the withholding...
Amid mounting pressure from the business community over sweeping powers granted to tax officials under Sections 37A and 37B of the Sales Tax Act, the Federal Board of Revenue (FBR) has introduced a procedural framework to regulate arrests in tax fraud cases, providing safeguards to prevent misuse.
The move follows a nationwide strike by...
The Federal Board of Revenue (FBR) has issued new procedures to govern the registration of e-commerce sellers and the collection of tax on digital transactions. These measures are part of a broader effort to bring the retail market into the tax net and ensure tax compliance for digitally ordered...
Pakistan and the USA struck a trade deal under which reduced tariffs on reciprocal basis will help boost bilateral trade, expand market access, attract investment, and foster cooperation in areas of mutual interest.
There is a possibility that the USA will impose a tariff in the range of 15 to...
The Federal Board of Revenue (FBR) has suspended the digital proceeds tax on digitally ordered goods and services supplied from outside Pakistan, effective July 1, 2025, according to SRO 1366(I)/2025 issued on Wednesday.
The new directive states that the Digital Proceeds Tax Act 2025 will not apply to digitally ordered...
The Federal Board of Revenue (FBR) has relaxed upper capping limit up to 10 percent of the export value for processing of deferred sales tax refunds of exporters (excluding five export orientated sectors) under the “FASTER” system.
In this regard, the FBR has issued instructions to the field formations on...
