Pakistan’s Federal Board of Revenue has raised concerns over a sharp decline in taxable income reported by major exporters across the country.
The tax authority has instructed its field offices to conduct detailed reviews of tax returns, warning of legal consequences in cases of underreporting without valid justification.
Following recent amendments to the Income Tax Ordinance, including changes to Section 154, the FBR has directed its field formations to identify and scrutinise between 10 and 30 major exporters.
The review will focus on exporters based in Karachi, Lahore and Islamabad, according to officials familiar with the directive.
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The FBR noted that the decline in reported income followed the introduction of a minimum tax on export income under the Finance Act.
Officials said exporters had allegedly reduced their declared taxable income after the new provision came into effect.
The move forms part of broader efforts by the tax authority to strengthen compliance and improve transparency in export-related taxation.
The FBR has warned that exporters found understating income without valid reasons may face legal action.
All suspicious cases identified during the review are to be forwarded to the FBR headquarters by January 1, 2026, according to the directive.
