On February 15, 2026, the Federal Board of Revenue (FBR) of Pakistan formally disposed of a representation regarding alleged double taxation on cross-jurisdictional transactions involving Pakistan and Azad Jammu & Kashmir (AJK). The FBR cited a lack of administrative control over the AJK Council Board of Revenue (CBR) as the reason for its decision, stating that the issues raised fell outside its jurisdiction. Tax lawyer Waheed Shahzad Butt, representing the affected parties, highlighted the serious jurisdictional conflict, noting, "Although the taxpayer already deposits all taxes with the FBR, AJK authorities are also demanding that withholding tax... be filed with them through what we consider an improper mechanism." This decision leaves taxpayers in a precarious situation, facing potential double taxation and inconsistent enforcement from different authorities.