New Ordinance Aims to Resolve Tax Disputes
The FBR has put into action a law that grants its officers the authority to monitor how goods and services are produced, stored, and distributed. This law is set to improve monitoring practices, enhancing President Approves New Law and accountability throughout various industries.
The new legislation, therefore, grants provinces the power to seize cigarettes that have avoided paying taxes. To ensure proper enforcement, consequently, officers will be stationed at business locations for continuous monitoring. Ultimately, this law is designed to strengthen tax compliance, especially in bustling urban markets.
New Tax Law to Recover Pending Taxes
ISLAMABAD: To strengthen the tax framework and boost national revenue, the President has approved the Tax Laws (Amendment) Ordinance, 2025. The ordinance aims to recover tax amounts currently tied up in prolonged legal disputes, as reported by The News on Sunday.
The government has introduced a new ordinance that empowers Inland Revenue Officers to station themselves at business sites, closely monitor production, and promptly collect taxes in accordance with court rulings. It also authorizes provinces to confiscate cigarettes that have evaded tax payments.
The Tax Laws (Amendment) Ordinance, 2025, is set to take effect without delay. Furthermore a key objective of this ordinance is to recover tax amounts currently held up in ongoing legal disputes. In addition, in collaboration with the IMF, the government plans to secure billions of rupees in the coming months in order to ensure that the Federal Board of Revenue (FBR) meets its target of Rs12,332 billion by June 30, 2025.
Key Changes in Tax Laws
Additionally, the government has introduced amendments to the Income Tax Ordinance, 2001.
1. Revised Section 138:
The government has introduced a new sub-section (3A) after sub-section (3); specifically, it states that taxpayers must pay any tax due under the ordinance or an assessment order immediately or within the period specified by the income tax authority once the High Court or Supreme Court makes a ruling. Furthermore, this applies regardless of any conflicting legal rulings or provisions.
2. Revised Section 140:
The government introduced a new sub-section (6A) after sub-section (6), requiring taxpayers to recover any tax due under an assessment order immediately or within the time frame specified in a notice. This provision takes precedence over any conflicting legal rulings once the High Court or Supreme Court issues a decision.
3. Clause 175C Activation:
With Clause 175C, the FBR and chief commissioners can deploy officers to business sites to monitor goods, services, production lines, and unsold items as outlined in the ordinance.
To improve the President Approves New Law system in Pakistan, the FBR has started using Section 175C of the Income Tax Ordinance, 2001. This rule lets tax officers visit business places to check how goods and services are being made, stored, and delivered. The main focus is on large businesses in the service sector, where records are often not complete. Before this, such monitoring only applied to goods under the Sales Tax Act of 1990 and the Federal Excise Act of 2005.
The government introduced this measure to extend tax checks to services and target the hidden economy, which accounts for over 30% of Pakistan’s GDP. It comes in response to concerns about the heavy taxes on salaried people and registered businesses.
Since services make up nearly 60% of the GDP, the FBR expects better record-keeping to boost tax revenue. This could lead to the possibility of lowering income tax rates for salaried individuals.
The FBR emphasizes that the new law ensures businesses in Pakistan’s urban and semi-urban markets pay their fair share of taxes.
It urges all parties to collaborate with tax authorities to build a fair fiscal system that neither punishes rule-abiders nor rewards tax evaders.
The government has amended the Federal Excise Act, 2005. Expanding Section 26 to cover goods missing the required tax stamps, barcodes, banderoles, stickers, or labels outlined in Section 45A. It now deems such goods non-compliant and in violation of the stipulated legal standards.
The recent updates to Section 27 cover goods missing required tax stamps or featuring counterfeit stamps, barcodes, banderoles, stickers, or labels. Additionally, a new sub-section (4) grants the FBR authority to assign enforcement duties to both federal and provincial officers.
President Approves Important Laws
These officers will monitor goods listed under Section 45A or counterfeit items to ensure compliance with Section 26 and sub-section (1) of Section 27. The government made these changes to strengthen tax law enforcement, curb tax evasion, and ensure better regulatory compliance by businesses.
A day ahead of the National Assembly’s session, President Zardari made his mark by promulgating four crucial ordinances. The batch featured the Tax Laws Amendment Ordinance, 2025, Besides the Tax Laws Amendment Ordinance, 2025.
The President enacted measures to revise ministers’ allowances, amend CDA regulations, and establish an authority to boost agricultural trade and food security.
A day ahead of the National Assembly’s session, President Approves New Law by promulgating four crucial ordinances. The batch featured the Tax Laws Amendment Ordinance, 2025, Besides the Tax Laws Amendment Ordinance, 2025.
The President also enacted measures to revise the allowances and benefits for federal ministers. Make amendments to the CDA’s regulations, and create an authority dedicated to boosting agricultural trade and food security.
Upcoming National Assembly Session
The National Assembly will convene at 5 pm on Monday. According to legal stipulations, the president can issue an ordinance only when both the Senate and the National Assembly are not in session.
The 2025 Amendment Ordinance to the Federal Ministers and Ministers of State (Salaries, Privileges) Act makes significant changes to ministers’ compensation and benefits. Consequently, the government will implement these changes starting January 1, 2025.
The ordinance aligns the salaries of federal ministers and ministers of state with those of National Parliament members.
The 2025 National Agri-Trade and Food Security Authority Ordinance establishes the National Agri-Trade and Food Security Authority. A Board of Governors will oversee its functioning, with a chairperson and Director General (DG) appointed to lead and manage its activities.
This authority will establish regulations for managing imports and exports, ensuring strict adherence to SPS (Sanitary and Phytosanitary) standards.
It will set up its own advisory committees and foster strong cooperation with provincial governments. We will set up a laboratory to perform thorough quality assessments on samples.
