FBR recovers Rs874 billion through enforcement measures in 2024-25

The Federal Board of Revenue (FBR) has announced that it successfully recovered Rs874 billion through enforcement measures during the fiscal year 2024-25, marking a significant increase from Rs105 billion in the previous year.

The FBR's enforcement recovery is a key component of its tax collection strategy, with the authority targeting Rs389 billion under this head for the 2025-26 fiscal year.

According to an FBR report, the eight-fold increase in recoveries was driven by specific interventions and structural changes, including improvements in governance. 

Notably, the FBR made substantial recoveries in the sugar and cement sectors, recovering Rs25 billion from the sugar sector (July-December FY 2024-25) and Rs12.8 billion from the cement sector (July-June 2024-25) through real-time production monitoring.

The FBR also reported Rs255 billion in recoveries from legal settlements through expedited dispute resolution processes, and a targeted push to nudge taxpayers increased admitted tax liability by Rs58 billion, reaching Rs218 billion in 2024-25, up from Rs160 billion the previous year.

The Large Taxpayers Office (LTO) Karachi also achieved a record-breaking recovery of Rs31 billion in outstanding taxes. 

Meanwhile, the FBR intensified enforcement in the retail sector, with over 40,000 Point of Sale (POS) installations now covering approximately 38% of Tier-1 retailers.