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ISLAMABAD: The Federal Board of Revenue’s (FBR) enforcement of retailers resulted in installation of point of sales (POS) system at 40,000 retail outlets, covering 38 percent of Tier-1 (big) retailers in 2024-25.

According to a FBR report issued on Thursday, the enforcement on retail deepened, with POS reaching more than 40,000 installations.

Expedited dispute resolution realized Rs. 255 billion from legal settlements. Targeted nudges sent to taxpayers increased admitted tax liability to Rs. 218 billion in 2024-25 from Rs. 160 billion in FY2023-24 (Rs. 58 billion increase).

The FBR tax to GDP Ratio increased from 8.8 percent in 2023-24 to 10.3 percent in 2024-25. This economic indicator hovered around 8.7 percent on the average in last five years. Planned fiscal policy interventions by FBR such as marginal increase in tax rates,

Initiatives for broadening of tax base and efficient enforcement by tax machinery were the contributary factors.

The improvement in tax to GDP ratio from a five year average of 8.7 percent to a double digit ratio of 10.3 percent in 2024-25 is primarily driven by quantum increase in direct taxes, which is 5.1 percent of the total GDP, followed by Sales tax which accounts for 3.4 percent of the GDP, FBR added.

Across the interventions, FBR recovered additional Rs. 25 billion in sugar sector (Jul-December 2024-25) and Rs. 12.8 billion in cement sector (July-June 2024-25) by deploying real-time production monitoring.

Copyright Business Recorder, 2025

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