The Large Taxpayers Office (LTO) Karachi recovered Rs31 billion in outstanding taxes by late June 2025. The LTO Karachi outstanding taxes recovery achieved through enforcement measures, including freezing bank accounts of major corporate defaulters. These actions initiated for non-payment of advance tax dues under Section 147 of the Income Tax Ordinance, 2001.
Sources said one company failed to deposit Rs14.5 billion by the June 15 deadline. Another entity was subjected to a Rs12 billion recovery through similar account freezing. The recovery process carried out under Sections 147 and 137(2) of the Income Tax Ordinance, which permit recovery of advance tax and post-assessment demands.
As per available information, the LTO Karachi outstanding taxes recovery contributed to surpassing Rs3 trillion in tax collections for fiscal year 2024-25. LTO Karachi collected Rs2.81 trillion by the end of May 2025. The final collections for June were aimed at crossing the Rs3.25 trillion mark.
Sources indicated that during July 2024 to March 2025, LTO Karachi registered Rs2.34 trillion in revenue, a 27 percent increase compared to the same period last year. Direct taxes accounted for Rs1.27 trillion, sales tax Rs916 billion, and federal excise duty Rs155 billion.
In the previous fiscal year, LTO Karachi collected Rs2,522 billion, contributing 30.74 percent to the FBR’s overall revenue. The recent LTO Karachi outstanding taxes recovery highlights continued efforts to ensure compliance among large taxpayers.
 Karachi recovered Rs31 billion in outstanding taxes by late June 2025. The LTO Karachi outstanding taxes recovery achieved through enforcement measures, including freezing bank accounts of major corporate defaulters. These actions initiated for non-payment of advance tax dues under Section 147 of the Income Tax Ordinance, 2001.){kind=link}