Focus on Digitisation, Tax Automation, and Crackdown on Evasion
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday instructed authorities to ensure the immediate and effective implementation of reforms within the Federal Board of Revenue (FBR), with a strong focus on digitising and automating the country’s tax system.
Chairing a high-level review meeting in the capital, the prime minister called for bold action to rectify what he termed as “70 years of mismanagement” in Pakistan’s tax structure.
He reaffirmed the government’s commitment to facilitating honest taxpayers and businesses, while warning of strict legal action against tax evaders, emphasizing that no leniency would be shown to those violating tax laws.
The prime minister also praised FBR and enforcement agencies for their recent efforts in boosting tax revenues, calling their performance commendable.
A major highlight of the meeting was a review of the proposed National Targeting System, designed to curb sales tax evasion. The initiative involves deploying e-tags and digital tracking devices on goods transport vehicles, with an integrated e-Bilty system managed through the FBR. Additionally, digital monitoring units will be set up on key highways and city entry points to deter smuggling and reduce delays for commuters.
Officials also unveiled the Customs Targeting System, to be rolled out at ports and airports, which will rely on artificial intelligence and data integration with both domestic and international platforms to better track imports and exports and detect smuggling and fraud.
The FBR will also initiate staff training to operate the new systems efficiently, beginning with a pilot project in a major urban center. Sectors such as cement, poultry feed, hatcheries, tobacco, and beverages will be brought under enhanced sales tax monitoring.
Furthermore, monitoring frameworks previously used in the sugar industry will now be extended to other key sectors, including tobacco, beverages, steel, and cement, to ensure broader compliance.
Prime Minister Shehbaz directed that all measures be implemented in a timely, effective, and sustainable manner to modernize Pakistan’s tax system and strengthen revenue collection.
