TaxTrax Consulting

Important update for all sales tax-registered businesses in Pakistan! The FBR has mandated a phased rollout of its new electronic invoicing system. Deadlines are approaching, so be sure to get your business registered.
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www.taxtraxconsulting.com

It was serving poorer segments of the society, at comparatively cheaper rates than the market.

Pakistan government announced on Thursday closure of all utility stores across the country, bringing an end to decades-old subsidised retail system.

As per a notification seen by Business Recorder, the government-owned Utility Stores Corporation (USC) shut its operations at all outlets from July 31 (today).

Read more:
https://www.brecorder.com/news/40375587/pakistan-govt-closes-all-state-owned-utility-stores

The government on Thursday reported more than Rs2.2 trillion worth of tax evasion through ‘fake’ and ‘flying’ invoices over the past two fiscal years, highlighting the massive scale of loss of public monies due to weak enforcement.

Testifying before the Senate Standing Committee on Finance and Revenue, Federal Board Of Revenue (FBR) Member Hamid Atique Sarwar said that more than Rs873bn in ‘fake’ and ‘flying’ invoices had been unearthed last year, on top of Rs1.37 trillion a year earlier, taking the total to Rs2.25tr in two years.

“This is almost one-third of the total” tax collected on the customs side, he said in response to calls from the business community for a relaxation in tax laws under the Finance Bill 2025-26.

Read more at the link in bio.

Don’t Miss the Tax Return Deadline – File Before September 30!

If you haven’t filed your tax return for 2024–2025 yet, now’s the time. Avoid penalties, stay compliant, and keep your financial record clean.

To get started, just gather the required documents:
Bank statements (July to June)
Salary certificate
Income from rental, agriculture, or business
Details of assets bought or sold
Personal expense summary
Withholding tax certificates
…and if you run a business, make sure to include your balance sheet, profit & loss account, and tax challans.

We make it easy. Send your docs, and we’ll handle the rest.

📞 Call/Whatsapp: +92-333-2652542
🌐 Visit: www.taxtraxconsulting.com
📍 Office: Bismillah Market, Sector I-10/1, Islamabad

In a move to simplify tax filing procedures for the salaried class, the Federal Board of Revenue (FBR) has introduced a new interactive return form, which will incorporate an auto-fill system that seamlessly integrates data about purchases, asset details and tax deductions at source etc. — ultimately generating a single-form return upon completion.

The new return form is currently available in English, while the Urdu version is set to come out by the end of this month.

During the first rollout phase, the form will also be available in two regional languages, Sindhi and Pashto. More versions in regional languages — Punjabi and Balochi — are expected to be rolled out subsequently.

Under the Income Tax Ordinance, individual taxpayers are required to file their returns by September 30.

Read more: https://www.dawn.com/news/1924287/automated-tax-filing-system-rolled-out-for-salaried-class

Tax Saving Tips for Salaried Individuals in Pakistan

CLAIM ADVANCE TAXES & TAX CREDIT ADJUSTMENTS BEFORE YEAR END

As the financial year draws to a close, now is the time for salaried individuals to review and adjust their tax liabilities. If you've incurred any advance taxes or are eligible for rebates/credits, it’s crucial to notify your employer before the May and June 2025 payroll is processed.

Many salaried individuals are unaware that they can request adjustments by submitting an IT-3 Form along with supporting evidence to their employer.

Examples of Adjustable Advance Taxes:

You may be paying advance taxes unnecessarily if you’re not adjusting them against your salary tax. Here are common areas where advance tax is deducted and can be adjusted:

• Cash Withdrawals from Banks – Section 231AB

• Vehicle Registration or Transfer – Section 231B

• Private Vehicle Token Tax – Section 234

• Telephone, Mobile, and Internet Bills – Section 236

• Sale or Transfer of Immovable Property – Section 236C

• Purchase or Transfer of Property – Section 236K

• Foreign Transactions via Debit/Credit Cards – Section 236Y

• Electricity Bills (e.g., KE) – Section 235 (applicable in case of non-filer owner/tenant when monthly bill exceeds Rs. 25,000)

Tax Credits You Can Claim

• Charitable Donations – Section 61 (some corporations don't allow this to be adjusted so you need to confirm this from your employer)

• Contribution to Approved Pension Funds – Section 63

What You Should Do:

1. Review your tax profile

2. Collect evidence of advance tax payments or eligible credits

3. Submit the IT-3 Form to your employer before June payroll processing (in some corporations this form is not required and they only require you to provide supporting documents)

Why pay more when you can save smartly?

Make the most of your income by ensuring you aren’t overpaying taxes due to unclaimed adjustments. Take action now and keep more of what you earn. Feel free to contact if you have any queries.

Pakistan’s salaried middle class has seen its real purchasing power shrink by nearly 50% over the past four years, despite inflation-adjusted salary increases.