Prime Minister Shehbaz Sharif on Friday directed a third-party audit of the Federal Board of Revenue (FBR) projects and called for expedited efforts to curb smuggling.
Chairing a meeting to review FBR-related matters, the prime minister instructed the authorities to develop a comprehensive strategy to enhance FBR’s enforcement, according to a press release from the PM Office.
He emphasized that the digitization of the FBR and an improved enforcement mechanism were crucial for advancing economic reforms in the country.
Describing the FBR as the backbone of the national economy, the prime minister appreciated its transformation plan. He noted that increased tax receipts would improve service delivery and strengthen the social sector.
He also stressed the need for consultation with prominent taxpayers and stakeholders on the FBR transformation plan and called for coordination with relevant government departments to ensure effective implementation of necessary amendments.
The prime minister reiterated the government’s priority to promote the private sector, calling it essential for a strong economy.
During the briefing, Prime Minister Shehbaz was informed that the FBR’s transformation plan involves the effective use of technology, recognition of efficient officers to boost tax receipts, and better enforcement of taxation laws.
The transformation plan, developed by FBR officers and experts over the past 40 days, aims to collect taxes without hindering economic development, while also facilitating honest taxpayers. It also includes provisions for strict action against individuals failing to pay full taxes on time or engaging in tax fraud, to prevent tax evasion.
These measures will be implemented following consultation with compliant taxpayers.
The meeting approved the FBR’s Homegrown Transformation Plan, formulated on the prime minister’s directives after analysis of tax receipts from the past 25 years, and in consultation with economic and technological experts.
In the first phase, efficient and competent officers will be posted in Karachi, a key taxpayer unit contributing 32% of national tax receipts. These officers will be supported by auditors and experts.
The plan also includes rewards for high-performing officers and requires a mandatory professional degree from top universities after common and specialized training programs.
To prevent customs duties theft, a new appraisal and enforcement mechanism was presented, assigning tasks to appraisers and inspectors without prior notice. Their activities will also be monitored through cameras.
A “carrot and stick” policy will be introduced for customs inspectors, and new checkpoints will be established in collaboration with the Frontier Works Organization (FWO) to combat smuggling.
Federal ministers Ahsan Iqbal, Azam Nazeer Tarar, Ahad Khan Cheema, Muhammad Aurangzeb, Abdul Aleem Khan, and Dr. Musaddik Malik, along with Minister of State Ali Pervaiz Malik, PM Coordinator Rana Ehsan Afzal, Attorney General Mansoor Awan, State Bank Governor Jameel Ahmed, FBR Chairman Rashid Mehmood Langrial, and other senior officials attended the meeting.
