Pakistan FBR tax compliance and monitoring measures

The Federal Board of Revenue (FBR) in Pakistan has introduced several measures to enhance tax compliance and monitoring. Initially, the FBR amended the Sales Tax Rules 2006, requiring registered businesses to install digital monitoring systems, such as video surveillance or production monitoring tools. Failure to connect to these systems can result in enforcement actions, including the sealing of business premises, with reopening contingent upon paying fines and verifying system installation with an FBR technical team.

Further efforts to strengthen oversight include new monitoring of the Export Facilitation Scheme (EFS). This follows concerns regarding the potential diversion of duty-free chemical and dye imports into domestic markets. Proposed measures include conducting audits and linking import permissions to consumption-based formulas. Additionally, the government has confirmed the extension of a retailer tax scheme beyond 2026, intended to broaden the national tax base by integrating small, unregistered retailers into the formal economy.