Pakistan: Amendments address income and excise tax collection and litigation

Amendments Ordinance 2025 introduces changes to income and excise tax laws

The government on May 5, 2025, issued the Amendments Ordinance 2025 to address fiscal revenue challenges and expedite tax litigation processes. The ordinance introduces changes to the Income Tax Ordinance 2001, and the Federal Excise Act 2005.

Income Tax Ordinance 2001

Recovery procedures: Sections 138 and 140 have been amended for the immediate recovery of tax following a decision by the High Court or Supreme Court, overriding any other provision or judgment. This aims to enhance tax collection efficiency in cases when courts have held against taxpayers.
Posting of officers: A new section 175C, empowers the Federal Board of Revenue (FBR) or the Chief Commissioner to post Inland Revenue Officers at business premises to monitor production and stock levels.

Federal Excise Act 2005

Seizure and confiscation of products: Amendments to sections 26 and 27 allow for the seizure and destruction of goods with counterfeit tax stamps or without required tax markings. This measure targets counterfeit production and enhances monitoring through electronic means.

Read a May 2025 report prepared by the KPMG member firm in Pakistan

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Pakistan: Amendments address income and excise tax collection and litigation

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