The government has issued the Tax Laws (Amendment) Ordinance 2025 to improve tax recovery and stop revenue losses. It comes after a sharp drop in revenue targets.
The ordinance changes key sections of the Income Tax Ordinance 2001 and the Federal Excise Act 2005. It allows Inland Revenue Officers to monitor production, supply, and inventory more closely.
It also enforces the use of tax stamps and labels to prevent under-reporting. Real-time monitoring will help stop tax evasion and improve transparency in business operations.
Moreover, the ordinance aims to reduce delays in court cases related to tax collection. Officials believe it will ensure better compliance and faster recovery.