• Promulgated on 2 May 2025, this ordinance was introduced to address enforcement and revenue gaps in Pakistan’s tax system.
  • It mandates immediate payment of tax once assessed, even if a stay or appeal is pending, tightening compliance and speeding up revenue collection.
  • Inland Revenue officers are now permitted to be posted at business premises for ongoing monitoring, enhancing tax oversight. Tax News+1

📊 2. Mandatory Electronic Invoicing (E-Invoicing) Rules

The Federal Board of Revenue (FBR) has introduced new SRO rules requiring businesses to adopt electronic invoicing and integrate their sales/point-of-sale systems with FBR’s digital system:

  • Notification S.R.O. 69(1)/2025 replaces and consolidates earlier e-invoice rules into a single framework in the Sales Tax Rules, 2006, detailing licensing, issuance, and integration obligations for electronic invoices.
  • Businesses must integrate hardware/software for e-invoicing to transmit sales data electronically.
  • Deadlines were set for electronic integration: most corporate entities by May 1, 2025, and non-corporates by June 1, 2025 — broadening the scope beyond fast-moving consumer goods to all registered taxpayers. KPMG+2Tax News+2

Why this matters: E-invoicing is being used as a key tool to reduce tax evasion and improve real-time revenue reporting and collection.

🧮 3. Finance Act 2025 Changes

The Finance Act, 2025 brought several significant revenue rule changes aimed at broadening the tax net and tightening compliance:

✔ Income-tax Ordinance amendments:

  • Certain business expenditures are now disallowed if paid in cash or to non-NTN holders (e.g., freight, commissions).
  • This reduces loopholes for undeclared transactions and boosts taxable income reporting.
  • Advance tax and cash withdrawal withholding changes also apply. Business Recorder

✔ Revenue-raising measures (Finance Bill proposals):

  • Net revenue measures of around Rs. 623 billion, including enforcement and new taxes.
  • Non-filers face restrictions: banned from buying vehicles, property, securities, or maintaining bank accounts — driving tax compliance (Budget 2025).
  • New levies: taxes on digital transactions, solar panel imports, increased withholding rates on cash withdrawals for non-filers, and higher taxes on services. ProPakistani

👥 4. Individual Taxpayer Rule Updates

  • Income tax slabs were adjusted in the Budget 2025–26, providing relief for lower income groups.
  • Surcharge rates for high-income salaried individuals were reduced (e.g., from 10% to 9%).
  • Withholding tax on profit from debt has been increased (from 15% to 20%).
  • Restrictions expanded on certain ineligible persons for property/vehicle purchases, bank accounts, etc.
  • FBR is now empowered to seek data on high-risk taxpayers directly from banks. PwC Tax Summaries

📊 5. FBR Changes in Compliance & Filing Procedures

  • New draft rules require online submission of income tax returns and withholding statements for individual taxpayers, modernising filing processes.
  • FBR is inviting stakeholder feedback on these proposed amendments. The Express Tribune

🛃 6. Customs & Duty Rule Reforms

  • The FBR abolished Additional Customs Duty (ACD) on many key imports and reduced regulatory duties on over 1,000 tariff lines — simplifying the tariff structure and supporting trade facilitation.
  • Over the next few years, duty slabs will be streamlined, helping domestic industries. Profit

📊 Global / Other Revenue Rule Developments (Context)

While not specific to Pakistan, global trends show broader revenue changes:

  • US/State tax law changes aimed at increasing corporate and individual revenue through new tax bills and budget reconciliation acts. RSM US
  • State income tax law developments affect deferred tax and compliance features. RSM US
  • Budget reconciliation legislation (e.g., “One Big Beautiful Bill Act”) has wide implications for revenue and deductions in the U.S. tax system. Wikipedia

📌 Summary — Key Takeaways (Pakistan)

✔ E-invoicing is now mandatory with enforcement deadlines to integrate sales systems with FBR.
✔ Immediate tax payment upon assessment — even if appeal is pending.
✔ Expanded withholding and disallowance rules reduce cash-based tax avoidance.
✔ New restrictions and penalties on non-filers aim to increase compliance and formalise the tax base.
✔ Customs reforms simplify duty structures while supporting industrial growth.