Prime Minister Shehbaz Sharif on Tuesday issued directives for the immediate and effective implementation of ongoing reforms within the Federal Board of Revenue (FBR), with a paramount focus on digitizing and automating the nation’s tax system.
Chairing a high-level review meeting, the Prime Minister underscored the urgent need for decisive action to rectify what he termed “70 years of mismanagement” within the existing tax infrastructure. He emphasized a clear stance: while genuine taxpayers and legitimate businesses would receive maximum facilitation, individuals and entities engaged in tax evasion would face stringent legal action without any leniency.
The Prime Minister acknowledged and commended the concerted efforts of the FBR and its supporting enforcement agencies for their commendable work in enhancing tax revenue collection.
The meeting also delved into the planned introduction of a National Targeting System, a key initiative aimed at curbing sales tax evasion. This innovative system will leverage e-tags and digital devices to meticulously track vehicles transporting goods. It will be further bolstered by an e-Bilty mechanism, which will be issued directly through the FBR’s system. To further enhance oversight, digital monitoring systems are slated for installation at major highways and key city entry points, promising to significantly reduce smuggling activities and simultaneously save valuable time for commuters.
Officials at the meeting also informed the Prime Minister about the imminent introduction of a Customs Targeting System at ports and airports. This system is designed to automate the monitoring of imports and exports, utilizing artificial intelligence and integrating with both domestic and international databases to effectively combat smuggling and tax fraud.
Briefings also covered plans for comprehensive training of FBR staff on the new systems, alongside an outline for a phased rollout, commencing with a pilot project in a major city. Specific sectors, including cement, hatcheries, poultry feed, tobacco, and beverages, are slated to come under stricter sales tax surveillance. Furthermore, monitoring mechanisms similar to those successfully implemented in the sugar industry are now being extended to the tobacco, beverage, steel, and cement sectors.
The Premier concluded the meeting by directing that all these vital measures be implemented promptly, effectively, and in a sustainable manner to ensure lasting positive impact on the nation’s tax collection and economic stability.
