The Federal Board of Revenue (FBR) has removed the “estimated fair market value” column from the 2025 income tax return form after Prime Minister Shehbaz Sharif directed officials to make the filing process easier for citizens. The move is part of the government’s wider effort to promote compliance by simplifying procedures.
According to officials, the column had drawn frequent criticism from taxpayers who found it confusing, unnecessary, and difficult to calculate without professional assistance. The removal is expected to reduce errors and lower the cost of filing returns, particularly for individuals and small businesses that rely on simpler reporting mechanisms.
The decision reflects the government’s policy of reducing obstacles in the tax system while improving documentation. Authorities said the step will not only save time for filers but also help in restoring public confidence in the FBR, which has long faced complaints of complex procedures discouraging voluntary compliance.
The FBR emphasized that the change does not affect overall transparency or accountability in the tax system. Instead, the board argued that simplification will bring more people into the tax net, helping to broaden the base without burdening existing taxpayers with unnecessary details.
Tax practitioners and financial experts welcomed the announcement, calling it a practical measure aligned with international practices. They noted that while high-value assets can still be assessed through other mechanisms, removing redundant columns from standard return forms makes compliance less intimidating for average taxpayers.
Experts, however, urged the government to complement the reform with stronger digital filing platforms, taxpayer education campaigns, and further simplification of other forms. They stressed that a consistent approach to ease of doing business is essential for increasing Pakistan’s revenue base and reducing reliance on external borrowing.
FBR removes fair market value column from 2025 tax return form
