LTO Karachi Recovers Rs31B from Tax Defaulters

Karachi, June 29, 2025 — The Large Taxpayers Office (LTO) Karachi has recovered a staggering Rs31 billion in unpaid taxes by freezing bank accounts of major defaulters, a bold enforcement drive by the Federal Board of Revenue (FBR) officials to boost tax compliance among large corporate taxpayers in Pakistan’s financial hub, executed over recent days. The LTO Karachi targeted high-volume, high-value firms, including a state-owned enterprise and private companies in marine, housing, and energy sectors.

Actions hit firms failing advance tax payments under Section 147 of the Income Tax Ordinance, 2001, with one company dodging Rs14.5 billion due June 15, prompting LTO to assess and debit funds via banks based on turnover. Another Rs12 billion was seized from a separate defaulter, with additional recoveries from other non-compliant firms. Section 147 mandates quarterly payments by September 25, December 25, March 25, and June 15, empowering FBR to attach accounts for non-compliance. Further, Section 137(2) enabled demand notices for assessed amounts, requiring payment within 30 days.

Web context flags Pakistan’s tax evasion crisis (e.g., 70% informal sector, web ID: 0), while posts found on X show mixed views—some back tough measures, others decry harsh tactics. Critically, the narrative of “compliance push” may mask enforcement flaws—web data points to systemic gaps, and X sentiment suggests distrust in fair targeting, hinting at potential resistance.