Pakistan’s tax system is facing a crisis of public trust due to complaints against the Federal Board of Revenue (FBR). They surged by 550% in early 2025. The Federal Tax Ombudsman received 13,000 complaints from January to April.
It was higher than the 2,000 received during the same period in 2024, despite government efforts with the FBR Transformation Plan. Complaints reveal serious issues such as abusive behaviour by tax officials, illegal notices, arbitrary bank account freezes, and fake invoices.
Some taxpayers even reported hacking of sales tax accounts. These incidents reflect worsening systemic problems under revenue collection pressure. FBR officials admit to harsh conditions but justify aggressive enforcement due to high fiscal targets.
After the IMF negotiations, the authority aimed for Rs12.332 trillion in annual revenue, down from Rs12.970 trillion. Pakistan has also pledged to raise its tax-to-GDP ratio to 10.6% amid economic headwinds.
Enforcement pressure has led to questionable practices at the field level. Offices are under intense strain to meet targets, often sidelining due process. While over 6,000 complaints have been resolved, the growing volume alarmed officials.
The situation exposes a gap between revenue goals and economic capacity. Overly aggressive tactics risk eroding long term taxpayer compliance. Experts stress the need for dispute resolution reforms and systemic fixes to restore trust in the tax system.