The Federal Board of Revenue has increased its audit efforts, focusing on three key sectors: doctors, beauty parlours, and the paint industry.
This move is part of Pakistan’s agreement with the International Monetary Fund. Updated on 26 November 2025, the initiative is meant to broaden the tax base, lower the amount of unreported income, and boost revenue collection from industries that have traditionally underreported their earnings compared to what they actually earn.
Why FBR Is Expanding Audits
The decision to expand audits comes from the need to meet revenue targets and improve the management of public finances.
As part of the IMF program, Pakistan must widen its tax base and implement stricter rules on documentation.
These particular sectors — particularly doctors who charge high fees, upscale beauty salons, and paint producers — have shown a big difference between their real income and the amount they report.
Who Is Being Targeted
The FBR’s campaign is concentrating on:
- Doctors who earn a lot in big cities
- Luxury beauty parlours and businesses that offer cosmetic treatments
- Companies involved in making and selling paint
These businesses are under close watch for how they report their income, track their sales, and document their expenses.
How the Audit Process Works
FBR is checking:
- Bank statements
- Sales records and data from point-of-sale machines
- Invoices from suppliers
- Expense reports
- Past tax returns
Both desk-based reviews and on-site inspections may take place if there are any inconsistencies found.
Impact on Businesses
Businesses in these sectors are being asked to keep full and accurate records and report their earnings honestly.
FBR’s stricter audit measures are meant to:
- Find out how much income is not being reported
- Ensure proper tax documentation
- Decrease the loss of revenue
- Improve tax compliance across the country
What Businesses Should Do Now
To stay in line with the law and avoid facing penalties, affected businesses should:
- Check that their bank records match their sales data
- Keep proper invoices for purchases and expenses
- Ensure that payroll and staff payments are properly documented
- Review past tax filings for accuracy
Seek advice from a tax professional if their records are not complete
Why This Move Matters
This audit drive helps support Pakistan’s larger economic efforts by:
- Making tax reporting more transparent
- Boosting the amount of tax collected
- Meeting the requirements set by the IMF
- Promoting better fiscal control
It shows a clear move towards tighter enforcement and more accurate record-keeping in sectors that have a high income but low reported earnings.
