In response to low tax compliance, tax evasion and increased revenue collection, the Federal Board of Revenue (FBR), has embarked on a field agency wide FBR industries field audit of 42 major areas, to be spread throughout the country. In the FBR Transformation Plan, 102 professionals experienced in the sector and audit have been hired to conduct such inspections.
FBR Industries Field Audit Scope and Purpose
According to FBR, the initiative aims to:
- Verify declared income, expenses, and tax returns against actual operations.
- Detect undeclared sales, overstated expenses, or inventory mismatches.
- Increase government tax revenue and promote transparency.
- Apply sector-specific scrutiny using experts’ knowledge of industries.
- Support fiscal stability through improved accountability and record-keeping.
These FBR field audits will be conducted in phases, with the first focusing on 14 high-priority sectors.
FBR Industries Field First Phase
The first phase of FBR industries field audit covers:
Automobile, Textile, Iron & Steel, IPPs & DISCOs, Pharmaceuticals, Finance & Insurance, Banks, Sugar, Chemicals & Fertilizers, Real Estate & Builders, Petroleum & Lubricants, Cement, Telecommunication, and Tobacco.
FBR Industries Field Audit Process
The auditing procedure involves:
- Notice Issuance – A notice to business listing what is necessary to be shown is issued.
- On-Site Visit – Stock, ledgers, and payroll, or data on import/ exports are checked by auditors.
- Data Verification – The company records are compared with the information that was submitted to tax authorities.
- Compliance Report – The findings are provided, businesses can be charged penalties, or extra tax.
Typical results of audits are undeclared sales, missing invoices, missing inventory and understatement of payroll.
FBR Industries Field Audit: Hiring and SOPs
On August 5, 2025, FBR issued SOPs to recruit 100 specialists in sectors and 58 mentors in audit in the Inland Revenue formations. There is a recruitment that is being carried out by selection committees in North, Central, and South regions, each Chief Commissioner nominates a BS-19 officer as a focal person.
Although the original plans made a reference to 158 positions, the ongoing FBR industries field audit drive is implementing 102 skilled professionals to be implemented immediately.
Sectors in the FBR Industries Field Audit List
The full audit list covers: Automotive, Aviation, Banks, Beverages, Cement, Ceramics, Chemicals, Coal, Departmental Stores, Edible Oil, Education, Electronics, Feed, Fertilizer, Flour Mills, Food Importers, IT, various manufacturing sub-sectors, Poultry, Power, Real Estate, Restaurants & Marquees, Rice Mills, Services, Sugar, Tea, Telecom, Textile, and Tobacco.
FBR advises businesses in targeted sectors to:
- Keep accurate financial and inventory records.
- Use updated accounting systems and conduct internal audits.
- Ensure tax filings are fully documented.
- Train staff to cooperate with auditors.
- Consult tax professionals for FBR regulations.
The FBR industries field audit is in line with reforms on use of technology in carrying out tax processes, simplification of returns, with the aim of enhancing revenue collection and compliance within the economy of Pakistan
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