The Federal Board of Revenue (FBR) has raised concerns over a sudden drop in the taxable income reported by major exporters across Pakistan.
Field offices have been instructed to review tax returns meticulously, with legal consequences for underreporting without valid justification.
Following recent amendments to the Income Tax Ordinance, particularly Section 154, the FBR has directed its field formations to identify and scrutinize between 10 and 30 major exporters from Karachi, Lahore, and Islamabad.
The board noted that after the introduction of minimum tax on export income under the Finance Act, exporters have reportedly underreported their taxable income. The FBR’s decision comes as part of broader efforts to ensure compliance and transparency in export-related taxation.
Legal action warning for underreporting
The FBR has issued a stern warning that exporters who understate income without valid reasons may face legal action. All suspicious cases identified during the review are to be submitted to the FBR headquarters by January 1, 2026, signaling the board’s seriousness in tackling tax evasion.
