Govt Scraps Asset Valuation Column From Tax Return Forms After Backlash

ISLAMABAD – In a surprise U-turn, the government has dropped the controversial “asset valuation” column from the 2025 income tax return form — just a day after defending it in strong terms. The decision came on the direct orders of Prime Minister Shehbaz Sharif following mounting criticism from taxpayers, lawyers, and business groups.

Why the Column Was Added

The new tax form, issued on July 7, had asked filers to declare the market value of their assets — both movable and immovable. Initially, taxpayers were given the option to either provide estimates or simply enter zero. Nearly 2.7 million people filed returns under this system.

But when the Federal Board of Revenue (FBR) noticed that most taxpayers were reluctant to share real values, it quietly changed the system to block the “zero” option. That meant taxpayers had no choice but to disclose a fair estimate of their assets’ worth.

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Pushback From All Sides

The move triggered strong resistance. Many saw it as a step toward over-documentation in an economy that still runs largely on cash. On Thursday, the FBR issued a clarification, assuring taxpayers that the information would not be used to impose extra taxes or send notices. It said the purpose was only data collection for the Economic Survey.

Even so, the resistance did not die down. The Prime Minister then formed a high-level committee headed by Law Minister Azam Nazeer Tarar to review the issue. The panel also included the petroleum minister, the state minister for finance, the attorney general, the special assistant to the PM on coordination, the finance secretary, and senior FBR officials.

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The Final Call

After meeting top tax officers and reviewing the legal position, the committee admitted the column was creating confusion and could complicate the filing process. It recommended scrapping the requirement altogether. The Prime Minister accepted the proposal.

In a statement, the FBR confirmed: “In pursuance of the directions of the Honourable Prime Minister, and keeping in view the difficulties being faced by taxpayers, the column of ‘Estimated Fair Market Value’ has been removed from the Income Tax Return.”

It reiterated that the column was introduced only for data purposes, not for assessing tax liabilities.

What Happens Now

With the column gone, taxpayers can continue filing returns without declaring asset values. The deadline for filing remains September 30, 2025. The FBR urged all eligible individuals to file “accurately and in good faith.”

While the rollback may ease filing this year, the episode has once again raised questions about consistency in tax reforms — and the broader challenge of bringing financial transparency to Pakistan’s economy.

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