FBR Boosts Tax Recovery with Extended Hours

The Federal Board of Revenue (FBR) has issued a stern directive to its Inland Revenue field formations, demanding an aggressive ramp-up in enforcement and recovery operations to meet the ambitious tax collection targets for Fiscal Year 2024-25. On Tuesday, May 20, 2025, instructions were issued for all Large Taxpayer Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs) to operate extended hours on Saturday, May 31, 2025, until 8:00 PM, underscoring the critical urgency of maintaining revenue performance.

This intensified push aligns with the government’s drive to boost revenues ahead of the upcoming federal budget and ongoing International Monetary Fund (IMF) negotiations, with the Fiscal Year 2026 budget expected to introduce new tax reforms and revenue measures. The FBR faces immense pressure to showcase improved collection in the fiscal year’s final stretch, especially with the Income Tax (Second Amendment) Bill, 2025, which aims to enhance recovery powers and permit monitoring of business premises by deployed officers.

By extending hours and amplifying field-level activities, the FBR seeks to maximize end-of-year collections and establish a robust baseline for Fiscal Year 2025 performance. Web context highlights the FBR’s historical struggles with tax targets (e.g., shortfall of Rs240 billion in FY24, web ID: 0), while posts found on X reveal public frustration—some label the enforcement as overreach, others question IMF-driven pressure. Critically, the narrative of “improved performance” may obscure compliance challenges—web sources note tax evasion risks, and X sentiment suggests business pushback, hinting at potential economic friction.