Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Breaking News

FBR freezes bank accounts over Rs23.23b tax dispute

byCT Report
24/06/2026
in Breaking News, Lahore, Latest News, Slider News
Share on FacebookShare on Twitter

LAHORE: The Federal Board of Revenue (FBR) has frozen the bank accounts of the Universal Service Fund (USF), a government-owned organization responsible for expanding telecom services in underserved areas, over a disputed withholding tax demand of Rs23.23 billion.

The move has disrupted payments for several ongoing telecom infrastructure projects aimed at improving connectivity in rural and remote regions across Pakistan.

You might also like

IFC invests $20m in Novatex to bolster Pakistan’s packaging exports, sustainable production

08/08/2026

Pakistan begins preparing FATF 2027 performance report

08/08/2026

According to official documents, the Deputy Commissioner Inland Revenue (Audit) issued assessment orders for tax years 2015 to 2023, raising a cumulative tax demand of Rs23.23 billion. The demand stems from the disallowance of subsidy-related expenses under USF projects, with tax authorities alleging non-compliance with withholding tax regulations.

USF has strongly contested the assessment, maintaining that subsidy payments made under its projects are exempt from withholding tax. The organization argues that telecom operators receiving subsidies through a transparent competitive bidding process had already fulfilled all applicable withholding tax obligations when spending the funds.

The Universal Service Fund plays a critical role in Pakistan’s digital development by financing telecom infrastructure projects in unserved and underserved regions where private-sector investment is commercially unviable.

Industry officials warn that the freezing of USF accounts could delay the rollout of broadband and telecom services in remote areas, potentially affecting thousands of communities awaiting improved digital connectivity.

USF is funded through mandatory contributions from licensed telecom operators, which are required to deposit 1.5 percent of their annual gross revenues into the fund to support nationwide telecom expansion initiatives.

The tax dispute between the FBR and USF is expected to have significant implications for Pakistan’s rural connectivity goals and ongoing efforts to bridge the digital divide.

Related Stories

IFC invests $20m in Novatex to bolster Pakistan’s packaging exports, sustainable production

byCT Report
08/08/2026

ISLAMABAD: The International Finance Corporation (IFC) has announced an investment of up to US$20 million in Pakistan’s leading plastic packaging...

Pakistan begins preparing FATF 2027 performance report

byCT Report
08/08/2026

ISLAMABAD: Preparations for Pakistan’s 2027 Financial Action Task Force (FATF) report have begun, with the Karachi Desk starting to compile...

High powered Chinese business delegation explores bilateral trade & investment avenues at ICCI

byCT Report
08/08/2026

ISLAMABAD: President of the Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mehmood, has called for taking Pakistan-China economic...

PRA adopts zero-tolerance policy for implementation of E-IMS

byCT Report
08/08/2026

LAHORE: The Punjab Revenue Authority (PRA) has adopted a zero-tolerance policy for province-wide implementation of the Electronic Invoice Monitoring System...

Next Post

Govt borrows Rs4.9 trillion from banks despite rise in tax collections

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.