The Federal Board of Revenue (FBR) has officially removed the “Estimated Fair Market Value” column from the Income Tax Return (ITR) form for the tax year 2025. The decision was made following the directives of Prime Minister Muhammad Shehbaz Sharif, who intervened after concerns were raised by taxpayers and stakeholders about the complexity of the requirement.
The move is intended to simplify the tax filing process and encourage greater compliance by eliminating additional burdens placed on filers. A press release issued by the FBR confirmed that the column, which required taxpayers to declare the fair market value of both movable and immovable assets, will no longer appear in the IRIS tax return system.
The change came after the Prime Minister established a high-level committee tasked with reviewing the issue. The committee was chaired by Federal Minister for Law Senator Azam Nazeer Tarar and included several key figures: the Federal Minister for Petroleum, the Minister of State for Finance, the Attorney General for Pakistan, the Special Assistant to the Prime Minister on Coordination, the Secretary Finance, the Chairman FBR, and the Member Customs FBR.
The committee convened on Friday to evaluate the implications of the column and its potential impact on the taxpayer community. After detailed deliberations, members recommended its removal, emphasizing that tax return filing should remain straightforward and transparent without unnecessary complexities. Prime Minister Shehbaz Sharif subsequently approved the committee’s recommendation, and the FBR was directed to immediately update the forms.
According to the FBR, the “Estimated Fair Market Value” column was originally included for data collection purposes. The information was meant to provide additional insights for the government’s Economic Survey, helping policymakers better understand asset distribution in the country. However, the board clarified that the column had no direct bearing on the calculation of income, tax liability, or audit selection.
Despite its limited function, the requirement created confusion among taxpayers, many of whom viewed it as a step toward stricter monitoring or future assessments. Tax experts and professionals voiced concerns that the additional information might discourage voluntary compliance and increase hesitation among individuals required to file returns. By removing the column, the FBR aims to restore confidence and make the filing process less intimidating.
In its statement, the FBR reaffirmed its broader commitment to taxpayer facilitation and stressed the importance of accurate and timely submissions. The board urged all eligible individuals and entities to file their income tax returns before the September 30 deadline, highlighting that simplification measures are part of a larger strategy to expand the tax net without placing unnecessary strain on honest filers.
The decision has been largely welcomed by business groups, legal experts, and tax practitioners, who see it as a positive signal from the government. Analysts note that simplifying compliance procedures is a critical step toward improving Pakistan’s tax-to-GDP ratio, which has remained among the lowest in the region. By focusing on transparency and ease of filing, the government hopes to encourage more people to come into the formal system, reducing reliance on indirect taxation and broadening the overall revenue base.
As the tax season progresses, the FBR is expected to continue introducing measures aimed at streamlining the process and building trust with taxpayers. Removing the controversial column represents not only a technical adjustment but also a broader policy shift toward encouraging voluntary compliance through facilitation rather than enforcement pressure.
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