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FBR Launches Tax Reform Plan with AI Digital Monitoring

FBR Launches Tax Reform Plan with AI Digital Monitoring

FBR Unveils Major Reform Plan to Boost Transparency and Tax Compliance

Islamabad – The Federal Board of Revenue (FBR) has rolled out a comprehensive transformation plan aimed at improving transparency, expanding the tax base, and making compliance easier for businesses and citizens.

The awareness session was chaired by FBR Chairman Rashid Mahmood and attended by key stakeholders from the business community. The roadmap for institutional reform, earlier approved by Prime Minister Shehbaz Sharif, was presented by Dr. Hamid Ateeq Sarwar, Member of Inland Revenue Operations.

The plan focuses on three main pillars: people, technology, and processes. To strengthen its workforce, the FBR is set to recruit around 1,600 auditors. These officers will undergo training at top universities, with appointments based on integrity, performance, and a new rating system.

On the technology front, the FBR announced the launch of digital production monitoring in key industries, including sugar, cement, fertiliser, beverages, tobacco, poultry, and textiles. Artificial intelligence (AI) will also be used to select audits, reducing human involvement and ensuring fairness.

Another major step is the introduction of the “Faceless Customs Appraisement” program, which has already increased revenue per Goods Declaration (GD) by 17.3% while cutting clearance times at ports.

Revenue from enforcement measures has also surged—growing eightfold compared to the previous fiscal year. To support taxpayers, a dedicated Facilitation Division has been set up at LTO Karachi, where senior officers will directly address concerns. The Chairman further proposed a joint committee of FBR, OICCI, and PBC representatives to resolve valuation disputes.

Business leaders welcomed the reforms, noting that technology-driven solutions will not only expand the tax base but also ease the burden on compliant taxpayers.

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