- The laws allow provinces to confiscate tax escaled taxes.
- The officers will be displayed in corporate premises for surveillance purposes.
- The legislation guarantees the fulfillment of tax obligations in the urban markets.
Islamabad: In order to increase the generation of income and to fight against existing shortcomings in the tax sector, the president Asif Ali Zardari promulgated the order of tax laws (amendment), 2025, which aims to recover the amounts of tax linked to litigation, The news reported on Sunday.
Under this ordinance, interior income agents are authorized to be stationed in corporate premises to monitor production and collect taxes immediately after the decisions of higher courts. The ordinance also empowers the provinces to confiscate tax cigarettes.
The order, entitled The order on tax laws (amendment), 2025, will come into force immediately. One of its key objectives is to recover the pending tax amounts linked to the dispute. The government agreed with the IMF to recover billions of rupees in the remaining months to reach the federal objective of the Federal Council (FBR) of RS12 332 billion by June 30, 2025. The income tax order, 2001 was modified as follows:
1. Article 138 Amendment: After paragraph (3), a new subsection (3A) has been inserted, declaring that any tax payable under the order or an evaluation order will be immediately payable – or within the period specified in an opinion issued by the powers of income tax – once the issue is decided by a high court or the Supreme Court, independently of any other decision or judicial decision.
2. Article 140 Amendment: After paragraph (6), a new sub -section (6a) has been added, stipulating that any tax payable under an evaluation order will immediately become recoverable – or within the time specified in an opinion – once the case is provided for by a high court or SC, exceeding any other judicial provision or judicial judicial.
3. New clause 175C: This clause authorizes the FBR or the chief commissioner to display the agents of internal income in business premises to monitor production, the provision of goods, the provision of services and unbones, subject to specified conditions.
In an important decision to deal with the inequalities of the tax structure of Pakistan, the FBR has operationalized article 175c of the income tax order, 2001. This provision allows internal income agents to monitor production, actions and the supply of goods and services – in particular by integrated companies in the largely undocumented service sector. Similar application mechanisms under the 1990 law on sales tax and the Federal Excise Act, 2005, only applied to goods.
This modification extends the surveillance of services, targeting the underground economy, which should exceed 30% of formal GDP. The measure responds to growing public concerns about tax charges on the salaried class and documented manufacturers. By improving documentation in the high potential services sector – which constitutes almost 60% of GDP – the FBR aims to create a budgetary space which could allow potential reductions in individual tax rates for employees.
Currently, more than 70% of companies in the service sector remain unregistered, resulting in significant tax leaks.
The prescription specifically targets underdocumented and high-income companies, including restaurants, hotels, guest houses, wedding rooms, clubs, messaging services and freight, beauty salons, clinics, hospitals, diagnostic laboratories, gymnasiums, exchange resellers, photographers and traders. In particular, some private hospitals would charge between 100,000 and 200,000 rupees per day for hospital rooms – prices exceeding those of five -star hotels – while underestimating income and in raising taxes.
The FBR stresses that the legislation guarantees that those who benefit from the urban and semi-urban markets of Pakistan fulfill their tax obligations. He urges stakeholders to cooperate with tax authorities to promote a fair and robust tax system which does not penalize compliance or reward.
The Federal Excise Act, 2005, has also been modified: article 26 amendment: paragraph (1) now includes goods without tax stamps affixed or counterfeit, bar codes, banners, stickers or labels, as required under article 45A.
Section 27 Amendment: The paragraph (1) now covers goods with counterfeit or missing tax stamps, barcodes, banders, stickers or labels. A new subsection (4) authorizes the FBR to delegate powers to federal or provincial officers to enforce article 26 and paragraph (1) of article 27 for goods monitored under article 45A or counterfeit goods. These modifications strengthen the application mechanisms to slow down tax evasion and ensure compliance between the sectors.
President Zardari promulgated four orders per day before convening the session of the National Assembly. In addition to the order on the modification of tax laws, 2025, the president promulgated the federal ministers and ministers of the State (wages, allowances and privileges) order amendment, 2025, the order amendment of the CDA, 2025, and the national ordinance of agrified agriculture and food security, 2025.
The session of the National Assembly was summoned on Monday at 5 p.m. on Monday. Under the law, a presidential order can only be issued when the Senate and the National Assembly are not in session.
In accordance with federal ministers and state ministers (wages, compensation and privileges) Order of amendment 2025, the law of 1975, the state federal ministers and ministers (wages, compensation and privileges) have been modified. This order will come into force from January 1, 2025.
Under the ordinance, federal ministers and state ministers will receive wages equal to those of the members of the National Assembly.
Within the framework of the National Order of the Authority for Agricultural Security and Food Safety, 2025, the National Agri-Trade and Food Security Authority must be established. Authority has a board of directors. He must have a president and a DG will be appointed.
This authority formulates import and export guidelines. He must take measures to ensure SPS standards. Authority constitutes its own advisory committees. He must ensure cooperation with the provinces. He must establish a laboratory to check the samples.