By Abdul Ghani

The Federal Board of Revenue (FBR) has formally reduced income tax for women-owned startups by 25 percent, complying with the directions of the Federal Tax Ombudsman (FTO), according to a document available with Wealth Pakistan.

The document states that the action was taken in response to the FTO’s findings and recommendations on a complaint, which highlighted the absence of a functional option in the return form to avail the 25 per cent tax reduction facility for eligible women-owned startups.

The FBR further informed the ombudsman office that a self-explanatory email from the domain team of Pakistan Revenue Automation Limited (PRAL), along with relevant screenshots of the updated income tax return form, has been attached as evidence of compliance. The matter has been treated as a “final compliance report,” the document added.

The development is being seen as a significant administrative step toward facilitating women entrepreneurs by operationalising an already announced tax incentive. By integrating the relief option directly into the digital tax return system, the FBR has removed a procedural hurdle that had prevented eligible startups from claiming the benefit.

The move underscores the Federal Tax Ombudsman’s role in ensuring taxpayer facilitation and administrative accountability within the revenue machinery. The implementation is expected to encourage greater participation of women in formal business activities by easing their tax burden and simplifying compliance procedures through digital reform.

Credit: INP-WealthPk