PM directs FBR to bring 4.9 million wealthy individuals into tax net

Prime Minister Shehbaz Sharif has instructed Federal Board of Revenue (FBR) officials to bring 4.9 million wealthy and affluent individuals into the tax net without placing additional burdens on the poor.

According to a statement from the Prime Minister's Office on Thursday, PM Sharif chaired a four-hour-long review meeting focused on FBR reforms and digitisation. The session included briefings on the progress of Inland Revenue and Customs reforms over the past eight weeks.

"The digitisation process of the FBR is being overseen by internationally renowned consultants McKinsey, and the initial results are promising," an FBR spokesperson noted.

Prime Minister Sharif highlighted a significant achievement: "In the last four months, an Rs800 billion tax refund fraud was detected. We will further improve the tax refund system," he said. He also expressed concern over the delays in several FBR reform projects, deeming them "extremely regrettable."

The FBR briefing revealed that 83,579 tax-related cases, amounting to Rs3.2 trillion, are pending in various courts and tribunals. "Since the current government's tenure, various measures have been taken to resolve tax cases, with 63 cases worth Rs44 billion settled in the last four months," the spokesperson added.

Advanced technology has identified 4.9 million individuals with the capacity to pay taxes. The prime minister directed FBR officials to prioritise taxing the wealthy and affluent among them while sparing the poor.

Also read: PM Shehbaz orders FBR to revamp revenue strategy to combat national debt

The meeting also discussed the FBR's trader-friendly mobile application, which has registered 150,000 retailers since April 1, 2024. PM Sharif urged continued consultations with retailers to make this system more effective.

The premier instructed to increase the number of appellate tribunals to expedite tax case resolutions, aiming for 100 tribunals. He also ordered the establishment of a performance dashboard for these tribunals.

PM Sharif emphasised that there should be no delays in the payment of sales tax refunds and called for an immediate strategy to recover illegal refunds granted in the past. "The Fraud Detection and Investigation Department of the FBR must be fully digitised," he asserted.

He further directed the integration of all ongoing FBR reform projects into a centralised system and advocated for the use of state-of-the-art technology and skilled personnel in the digitisation efforts.

"There will be no delay in providing funds for upgrading the customs system," PM Sharif affirmed. He instructed the FBR to present strategies for new system software design and implementation, and for reforms in the Pakistan Revenue Automation Authority (PRAL).

The FBR officials announced the implementation of the Integrated Transit Trade Management System (ITTMS) at the Pakistan-Afghanistan borders of Torkham and Chaman starting October 2024. "International standard one-window facilities will be established," they said.

The development of the Automated Entry-Exit System (AEES), based on advanced scanning technology and linked to the Web-Based One Customs and Pakistan Single Window, has also begun. Initially, AEES will be implemented at Karachi's four ports and the airports in Karachi, Multan, and Peshawar. PM Sharif has also instructed its implementation at Gwadar port.

Lastly, FBR officials introduced the Single Sales Tax Return system, already implemented in the telecom sector, which will connect FBR with revenue authorities nationwide. PM Sharif mandated the application of this system to all taxpayers by October 2024.