Electric and hybrid vehicles in Pakistan could become more expensive in the upcoming fiscal year as the government considers ending existing tax concessions in the federal budget for 2026-27. The proposed move follows discussions with the International Monetary Fund (IMF), which has reportedly opposed continuing preferential tax treatment for environmentally friendly vehicles and related products. […]
sales tax
Federal Constitutional Court upholds KP sales tax on construction services
ISLAMABAD: The Federal Constitutional Court on Friday dismissed multiple petitions challenging the Khyber Pakhtunkhwa (KP) Sales Tax on Services Act, 2022, ruling that the provincial levy on construction services does not violate the Constitution. Read More: KP passes resolution for protection of LG system A two-judge bench, headed by Justice Aamer Farooq, addressed appeals against a […]
New checkpoints to curb tax evasion
ISLAMABAD — The government announced on Friday plans to establish new checkpoints aimed at preventing sales tax and excise duty evasion, particularly in the cigarette manufacturing sector. A major tax checkpoint will be set up at Kohala Bridge, controlling entry from Muzaffarabad to Murree and Abbottabad. Officials said the move is intended to curb illegal […]
FBR targets tile sector for Rs30bn tax evasion with camera monitoring
ISLAMABAD: Pakistan’s tile industry has been flagged for evading nearly Rs30 billion in annual Sales Tax, prompting the Federal Board of Revenue (FBR) to tighten monitoring across 17 industrial sectors. FBR Chairman Rashid Langrial announced that camera-based production tracking will be implemented to curb widespread tax manipulation, following successful interventions in the sugar and cement […]
FBR misses target by Rs270 billion in first four months
ISLAMABAD – The Federal Board of Revenue (FBR) faced a Rs270 billion revenue shortfall from July to October 2025. The agency collected less than its set target for the first four months of the financial year. The gap highlights ongoing challenges in tax compliance and collection. Sources said FBR collected Rs3,840 billion during this period, […]
FBR faces Rs270 billion shortfall in tax collection
ISLAMABAD: The Federal Board of Revenue (FBR) has reported a tax collection shortfall of Rs270 billion during the first four months of the ongoing fiscal year, from July to October 2025, highlighting continued fiscal challenges for the government. According to official data, the FBR collected Rs3.84 trillion in taxes during this period, against the target […]
Government establishes Tax Policy Office under IMF plan
ISLAMABAD — The federal government has officially launched a Tax Policy Office (TPO) aimed at reforming Pakistan’s tax framework and aligning it with the International Monetary Fund (IMF)’s structural reform requirements. According to the Finance Ministry, key appointments have been finalized, and the office will begin work next week to develop tax policies for the […]
Pakistan establishes Tax Policy to strengthen fiscal framework
. ISLAMABAD – The federal government has launched a Tax Policy Office to modernize and streamline Pakistan’s tax framework. To aligning it with conditions set by the International Monetary Fund (IMF). The Finance Ministry confirmed the key appointments for the office have finalized. He also confirmed work will commence next week on tax policies for […]
PSX urges resolution of sales tax disputes among provinces in budget FY26 proposals
The Pakistan Stock Exchange (PSX) has called on federal and provincial governments to address conflicts over the collection of sales tax on services. PSX wants the Council of Common Interest (CCI) to resolve the jurisdiction differences among provinces. They hope CCI will create a fair revenue-sharing formula for each province to end the ongoing dispute. […]
Government plans to remove sales tax on local cotton products to boost Industry
The federal government is moving forward with a plan to remove the 18% sales tax on local cotton, yarn, and grey cloth. This decision aims to support local products and make them more competitive against imports. A committee of federal ministers and secretaries discussed the proposal after multiple industry requests. Key stakeholders included the Pakistan […]