Budget 2025-26: FBR Targets Tobacco Sector
FBR’s spotlight turns too the tobacco sector, signaling a meaningful shift in tax compliance measures. Chairman Langrial unveils aggressive strategies to combat tax evasion and address disparities in income tax rates, initiating significant changes similar to those seen in the sugar industry. The primary goal is a more equitable tax system, targeting sectors that have been under-reporting. News Directory 3 brings you the latest updates. The government is set to expand its digital monitoring to enhance its reach and effectiveness, which may reshape the financials of businesses. Discover what’s next with these new policies.
FBR Intensifies crackdown on Tax Evasion, Addresses Passive Income disparity
Updated June 12, 2025
The Federal Board of Revenue (FBR) is initiating a major overhaul of Pakistan’s tax compliance system, targeting non-compliant sectors and expanding digital monitoring, according to Chairman Rashid Mahmood Langrial.
Langrial, speaking to Geo news, said recent enforcement in the sugar sector lead to a 39% increase in tax collection without raising rates. The FBR now plans to implement similar measures across other key industries to combat tax evasion.
The chairman emphasized that the FBR’s strategy involves directly targeting non-compliant businesses rather than increasing tax rates for the formal sector,which he noted can lead to market erosion.
Langrial also revealed that the Intelligence Bureau is monitoring FBR teams to prevent corruption. He said this oversight has already led to actions against corrupt officials within the FBR.
Similar monitoring has begun in the poultry sector, where initial checks revealed notable under-reporting of production and income tax evasion, langrial said.