FBR Rejects Claims of Unjust Exporter Taxation

ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday strongly refuted media reports and viral social media claims suggesting it intends to impose “unjust taxation” on exporters through aggressive scrutiny of their Tax Year 2025 income tax returns. The FBR clarified that a circulating letter attributed to the board is not authentic and has created a false impression. The authority emphasised that the change from a final tax regime to a minimum tax regime for exporters was enacted through the Finance Act 2024 and must be correctly reflected in TY2025 returns. To prevent bona fide errors or inconsistencies, field formations have been directed to process returns in line with law — a standard statutory duty involving desk audits and compliance checks. The exercise is being closely supervised by FBR headquarters to avoid misuse or undue inconvenience to taxpayers. The FBR reaffirmed its commitment to fair, transparent, and professional tax administration, facilitation of compliant taxpayers, and lawful enforcement. Earlier media reports had claimed the FBR ordered scrutiny of over 480 major exporters’ returns due to sharp drops in declared taxable income following the regime change. The development sparked concern among exporters and industry bodies like the Pakistan Business Council and Pakistan Retail Business Council, who fear heightened scrutiny could discourage investment and further burden an already struggling export sector facing rising costs and tax complexity.