The Federal Board of Revenue (FBR) has sent a tax notice to Sazgar Engineering Works Limited, a well-known Pakistani company that makes vehicles like the Haval SUVs. They are asking for about Rs 188.9 million in extra taxes for the year 2023.
The demand came from an order by the Additional Commissioner of Inland Revenue back on September 30, 2025. It was issued under a section of the Income Tax law that allows the tax department to review and change assessments.
Sazgar shared this update in its recent financial reports sent to the Pakistan Stock Exchange (PSX) earlier this month. The company has decided to fight the claim. They have already asked for a correction from the same tax officer and filed a full appeal with the Commissioner Inland Revenue (Appeals).
The management is confident they will win the case. Because of this, they have not set aside any money in their accounts for this amount yet. This means the demand has not affected their reported profits so far.
Sazgar is one of the growing players in Pakistan’s auto industry, particularly through partnerships with Chinese companies for electric and hybrid vehicles. The company recently reported good results, with higher sales and profits in the first half of the current financial year.
Tax notices like this are common in Pakistan’s business world, especially when the FBR checks past returns. Many companies challenge them and often get relief after review or appeal. It shows the ongoing effort by tax authorities to collect more revenue while businesses work to keep their costs in check.