Islamabad, June 29, 2025: In a record-breaking tax enforcement operation, the Large Taxpayers Office (LTO) Karachi has recovered a staggering Rs31 billion in outstanding taxes by freezing bank accounts of top corporate defaulters.
The recovery drive, launched under the supervision of the Federal Board of Revenue (FBR), targeted leading companies in the marine, housing, and energy sectors, including a major state-owned enterprise (SOE). These firms had failed to comply with advance tax obligations despite repeated reminders.
A massive Rs14.5 billion was retrieved from one company alone, after it defaulted on its June 15 advance tax under Section 147 of the Income Tax Ordinance, 2001. Authorities assessed the company’s turnover and, upon non-payment, instructed banks to debit the due amount directly.
In a separate case, another Rs12 billion was recovered using the same account attachment method. Several additional recoveries were made from businesses that missed quarterly tax deadlines, which fall on September 25, December 25, March 25, and June 15.
Under Section 147, companies must pay quarterly advance income tax based on estimated turnover. Persistent failure to meet these deadlines authorizes LTO Karachi to freeze accounts without further warning.
Officials confirmed that further actions were taken under Section 137(2), which enables tax notices to be served post-assessment. Once issued, taxpayers are bound to clear dues within 30 days or face forced recovery.
Read More: Fixed Charges in Gas Bills to Rise
This massive crackdown by LTO Karachi reinforces the FBR’s policy of zero tolerance for tax evasion, signaling a tough stance ahead for chronic defaulters in Pakistan’s financial capital.
Read More: Meezan Bank Net Profit 2025: Record Earnings, Q1 Dip & Islamic Banking Outlook
