Laws & Taxes

The Appellate Tribunal of the Punjab Revenue Authority (PRA) has delivered a landmark ruling that the outright sale of developed plots by real estate developers is not a taxable service for provincial sales tax.This decision overturns previous judgments by holding that the tax law's charging section, which applies only to the "lease, license or similar arrangements" of immovable property (where ownership is retained), prevails over the schedule listing the developers' service. Consequently, transactions involving the transfer of full ownership (sale) fall outside the scope of the provincial sales tax.

Pakistan's forex reserves have recovered significantly, but stability remains managed by external support (IMF, rollovers), not secured by self-sufficiency. The economy faces huge continuous strain from debt servicing (around $22B annually) and a large trade deficit ($35B projected). Stagnant exports and reliance on imports keep the situation vulnerable. To secure stability, Pakistan must prioritize structural reforms focused on reducing import dependency and aggressively boosting exports and remittances. The current calm is only a temporary "base camp."

PM Shehbaz Sharif approved the AI-powered Womenpreneurship Platform to boost women in the SME sector and reviewed SMEDA's reforms.SMEDA has opened new regional offices and formed a new board of experts. The PM ordered a clear timeline for the reforms. Finally, SMEDA/TDAP will represent Pakistan at BIOPROM-2025 in Russia.

The State Bank of Pakistan (SBP) has mandated that all digital bank accounts and mobile wallets in the country must have biometric verification completed by the deadline.Millions of account holders who failed to meet the deadline face immediate service suspension, losing the ability to send or receive funds. This new rule is part of a strict SBP policy shift to strengthen Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) controls.Customers must complete biometric verification as soon as possible to reactivate their accounts.

The Federal Board of Revenue (FBR) has unexpectedly extended the deadline for filing income tax returns for the tax year 2025 to October 15, reversing its firm prior stance. The decision was announced late Tuesday, right as the initial September 30 deadline was expiring. The FBR stated the extension, granted under Section 214A of the Income Tax Ordinance, 2001, was in response to requests from "various trade bodies, tax bar associations and the general public." Just one day earlier, the FBR had explicitly dismissed all reports of a possible extension, calling them "false, baseless, and misleading.

The Lahore Chamber of Commerce and Industry (LCCI) is urgently demanding the government extend the income tax return filing deadline from September 30 to October 31. Citing disruptions from devastating floods and major technical issues with the FBR's online system, the LCCI warns that without an extension, many honest taxpayers face unjust penalties. The business body insists the move is vital for compliance and relief.

SECP and Mobilink Bank have signed an MoU to simplify corporate account openings for SECP-registered companies. The collaboration will roll out in two phases, including data verification through SECP’s FI Portal and later, full digital integration via secure APIs. The initiative aims to boost transparency, improve regulatory compliance, and enhance ease of doing business while promoting financial inclusion for SMEs and MSMEs across Pakistan.

Pakistan's Senate IT Committee is taking a firm stand against the FBR, decrying what it calls "crippling" taxes on e-commerce that stifle digital growth. The panel, led by Senator Palwasha Khan, is pushing for tax relief and improved telecom services, while also tackling issues from inadequate cellular coverage in rural areas to decades-old spectrum disputes.

The Federal Board of Revenue (FBR) has suspended the controversial QR code login requirement for its “IRIS” tax system. The decision, which resolves a taxpayer’s complaint filed with the Federal Tax Ombudsman (FTO), simplifies the login process and marks a responsive step by the FBR to address user-specific issues with its digital platform.