ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Federal Board of Revenue (FBR) to broaden the tax base by incorporating 4.9 million affluent individuals, emphasizing that this initiative should not burden the economically disadvantaged.
In a statement released by the Prime Minister’s Office on Thursday, PM Sharif presided over an extensive review meeting focused on FBR reforms and digitalization efforts. The session included updates on the progress of Inland Revenue and Customs reforms undertaken in the past eight weeks.
“The digitization process at FBR is under the oversight of globally recognized consultants McKinsey, and initial outcomes have been promising,” noted an FBR spokesperson.
PM Sharif highlighted a significant achievement: “Over the past four months, we have uncovered a tax refund fraud amounting to Rs800 billion. We are committed to further enhancing the efficiency of our tax refund system,” he stated. He also expressed concern over delays in various FBR reform projects, labeling them as “highly regrettable.”
According to the briefing from FBR, there are currently 83,579 pending tax-related cases involving Rs3.2 trillion in various courts and tribunals. “Since the start of the current government’s tenure, efforts have been made to resolve tax disputes, with 63 cases totaling Rs44 billion settled in the last four months,” added the spokesperson.
Advanced technology has identified 4.9 million individuals with taxable capacity. Prime Minister Sharif directed FBR officials to prioritize taxation of these affluent individuals while safeguarding the interests of the poor.
The meeting also reviewed FBR’s trader-friendly mobile application, which has enlisted 150,000 retailers since April 1, 2024. PM Sharif urged ongoing consultations with retailers to optimize the effectiveness of this system.
The premier instructed the expansion of appellate tribunals to expedite tax case resolutions, aiming for 100 tribunals. He also mandated the creation of a performance dashboard for these tribunals.
PM Sharif stressed the importance of prompt sales tax refund disbursements and called for an immediate strategy to recover illegally issued refunds. “FBR’s Fraud Detection and Investigation Department must be fully digitized,” he insisted.
He further directed the integration of all ongoing FBR reform initiatives into a centralized system, advocating for the deployment of cutting-edge technology and skilled personnel.
“There will be no delay in allocating funds for upgrading the customs system,” PM Sharif affirmed. He tasked FBR with presenting strategies for designing and implementing new system software, as well as reforms within the Pakistan Revenue Automation Authority (PRAL).
FBR officials announced the upcoming implementation of the Integrated Transit Trade Management System (ITTMS) at the Pakistan-Afghanistan borders of Torkham and Chaman starting October 2024. “This will establish international standard one-window facilities,” they confirmed.
Progress is also underway on the Automated Entry-Exit System (AEES), which utilizes advanced scanning technology and is linked to the Web-Based One Customs and Pakistan Single Window. Initially, AEES will be deployed at Karachi’s four ports and the airports in Karachi, Multan, and Peshawar, with plans for implementation at Gwadar port as well.
Finally, FBR introduced the Single Sales Tax Return system, already operational in the telecom sector, which will integrate FBR with revenue authorities nationwide. PM Sharif mandated its expansion to encompass all taxpayers by October 2024.
