Sazgar Engineering on Edge as FBR demands Rs188.9 Million in 2023 Taxes

2026-02-07 - 15:06

KARACHI – Sazgar Engineering Works Limited, a known name in Pakistan auto industry, suddenly finds itself in the crosshairs of the Federal Board of Revenue. A staggering Rs188.9 million tax demand for the 2023 fiscal year has landed on its desk, sparking tension, legal maneuvers, and anxious glances from investors. Federal Board of Revenue (FBR) slapped automobile manufacturer with a staggering Rs188.9 million tax demand for the 2023 fiscal year amid legal showdown that investors and industry watchers are closely monitoring. The company firmly rejected the claim, filing appeals and insisting the demand is unjustified. Despite the hefty notice, Sazgar’s management has reassured shareholders that operations remain financially sound and uninterrupted. According to disclosures with the Pakistan Stock Exchange (PSX), the notice came from the Additional Commissioner Inland Revenue (ACIR) on September 30, 2025, under Section 122(5A) of the Income Tax Ordinance, 2001, following a reassessment of the company’s tax obligations. Sazgar has responded aggressively, submitting a rectification request under Section 221 and lodging a formal appeal with the Commissioner Inland Revenue (Appeals). Confident of a favorable outcome, the company has made no provision for the disputed amount in its quarterly or half-yearly accounts. In its PSX filing, the company labeled the tax demand “unjustified” and vowed to fight it through all available legal channels. The timing of FBR’s crackdown is notable, as authorities have intensified scrutiny of corporate tax filings, particularly for listed companies, in a bid to boost revenue collection and enforce compliance. Bad News for SUV Fans as Tank 500 HEV Bookings Face Long Wait