Prime Minister Shehbaz Sharif has directed authorities to expedite the resolution of tax cases stuck in courts, aiming to recover at least Rs500 billion by June.
Speaking at an open cabinet meeting, the prime minister emphasised the urgency of securing decisions in cases involving Rs4 trillion in disputed taxes. He cited the recent Sindh High Court ruling in the windfall income tax case, which allowed the government to recover Rs23 billion.
Attorney General Mansoor Awan informed the cabinet that outdated Federal Board of Revenue (FBR) legal procedures had caused delays in tax litigation. Following the prime minister’s intervention, revisions have been made to streamline the process. However, the government has provided a conservative estimate of Rs300 billion in recoveries to the International Monetary Fund (IMF).
Meanwhile, the IMF team has been in discussions with the FBR regarding tax collection performance, amid a revenue shortfall of Rs606 billion over the past eight months. The deficit could rise to nearly Rs1 trillion by June if corrective measures are not implemented.
The government plans to recover Rs300 billion from tax disputes and an additional Rs100 billion by adjusting tax rates on beverages and cigarettes.
Last month, Prime Minister Shehbaz urged Chief Justice of Pakistan Yahya Afridi to prioritise the resolution of long-standing tax cases. In response, the CJP sought recommendations from the government to enhance the judicial system’s efficiency.
