KARACHI: The Federal Board of Revenue (FBR) has raised a tax demand of Rs188.9 million against Sazgar Engineering Works Limited, the company confirmed in its half-yearly financial statement submitted to the Pakistan Stock Exchange (PSX) on Wednesday.
The company is currently contesting the demand before the Commissioner Inland Revenue (Appeals).
According to the statement, an Additional Commissioner Inland Revenue (ACIR) issued an order on September 30, 2025, under Section 122(5A) of the Income Tax Ordinance, 2001, for the Tax Year 2023, creating the tax liability. Following this, Sazgar filed a rectification application under Section 221 of the Income Tax Ordinance and also submitted an appeal with the CIR(A).
The company’s management is optimistic about a favorable outcome, and as a result, no provision for the tax demand has been included in the financial statements.
In addition to the tax matter, the company reported that two customers have filed consumer court cases over alleged claims. These cases are currently pending, and management believes the likelihood of any significant financial outflow is low. No provisions have been made, though the company continues to monitor developments closely.
Sazgar Engineering Works Limited, incorporated in 1991 as a private company and converted to a public limited company in 1994, is a leading Pakistani manufacturer engaged in the production and sale of automobiles, automotive parts, and household electric appliances. The company continues to focus on growth while managing regulatory and legal challenges.
