The Federal Board of Revenue (FBR) is preparing a major overhaul of tax monitoring and compliance systems in Pakistan.
New measures include expanded industrial production tracking, digital invoicing requirements, and stricter enforcement actions as budget discussions with the IMF continue.
The Federal Board of Revenue has decided to strengthen monitoring of industrial production across multiple sectors, including textiles and beverages.
According to official documents, production tracking systems have already been fully implemented in the sugar, cement, tobacco, and fertilizer industries.
Now, the FBR aims to extend this monitoring framework to the textile and beverages sector by October 2026.
IMF consultations and budget preparations
Pakistan is currently in consultations with the International Monetary Fund (IMF) regarding tax proposals linked to Budget 2026–27 preparations.
As part of these discussions, the FBR has presented a new set of measures aimed at improving tax collection and reducing tax evasion across the country.
Officials say the reforms are designed to strengthen revenue systems and improve transparency in industrial and retail sectors.
New fixed tax scheme for traders
Following the reported failure of a trader-friendly scheme, the FBR has decided to introduce a new fixed tax structure for retailers.
Under the proposed plan, traders with annual sales of up to Rs 200 million will be required to pay a one percent tax.
Authorities say data of around 3 million traders is already available, while further nationwide registration drives will continue.
Digital invoicing becomes mandatory
The FBR has also made it mandatory for active sales taxpayers to adopt a digital invoicing system.
A deadline of July 31, 2026, has been set for full compliance under this initiative.
According to officials, about one-third of taxpayers had already started issuing live digital invoices by March 2026.
Strict penalties are being prepared for businesses that fail to adopt the system.
To strengthen enforcement, the FBR has recruited 431 new auditors by March 2026.
Plans are also underway to hire an additional 396 auditors by June, aimed at improving tax audits and compliance checks.
Officials further stated that a new risk management system has been introduced for both corporate and non-corporate taxpayers to detect irregularities more efficiently.
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