In a significant move to modernize its tax collection system, the government has established a ten-member task force to oversee the comprehensive digitalization of the Federal Board of Revenue (FBR). The task force, chaired by State Minister for Finance and Revenue Ali Pervaiz Malik, is tasked with implementing policy interventions and data automation solutions for the FBR.
The decision comes as the government seeks to improve tax compliance, broaden the tax base, and enhance revenue collection efficiency. The task force comprises members from both the public and private sectors, bringing diverse expertise to the table.
Key areas of focus for the task force include:
- Data Integration: Synchronizing data with provincial revenue authorities and other government departments to create a comprehensive taxpayer profile.
- Risk-Based Auditing: Leveraging the National Identity Card (CNIC) as a primary identifier for targeted audits and expanding the tax base.
- Supply Chain Automation: Introducing digital systems to monitor the movement of goods from manufacturers to consumers, reducing tax evasion.
- Track & Trace System: Implementing a robust system to track the movement of goods and verify their authenticity.
- Strengthening PRAL: Reforming the Pakistan Revenue Automation Limited (PRAL) as an independent IT bureau for data analysis and statistics.
- Trade Data Sharing: Collaborating with trading partners to improve customs valuation and prevent undervaluation.
The task force is expected to present its recommendations and a detailed implementation plan to the Prime Minister within one month. The FBR will provide administrative support to the task force.
In a separate development, Prime Minister Shehbaz Sharif emphasized the urgency of FBR transformation, setting a clear target for his economic team. He underscored the importance of reforms to improve Pakistan’s tax system and directed strict action against those responsible for system deficiencies and irregularities.
The government’s commitment to digitalizing the FBR is a crucial step towards improving tax administration, enhancing transparency, and boosting revenue generation. By leveraging technology and adopting modern practices, Pakistan aims to create a more efficient and equitable tax system.
