PM Shehbaz stresses digitisation, automation to tackle tax evasion

Prime Minister Shehbaz Sharif directed on Tuesday the immediate implementation of ongoing reforms within the Federal Board of Revenue (FBR), stressing the importance of digitisation and automation to overhaul Pakistan’s tax system.

Chairing a high-level review meeting, the prime minister highlighted the need to rectify what he described as “70 years of mismanagement” in the country’s taxation framework.

Shehbaz promised maximum facilitation for honest taxpayers and businesses but vowed strict legal action against those involved in tax evasion, with no concessions.

The meeting discussed the launch of a National Targeting System designed to curb sales tax evasion. This system will employ e-tags and digital devices to track goods transport, supported by an e-Bilty mechanism integrated into the FBR system.

Digital monitoring installations are planned at key highways and city entry points to reduce smuggling and ease commuter delays.

Officials also briefed the prime minister on a Customs Targeting System to automate import and export monitoring at ports and airports. This system will use artificial intelligence and link with domestic and international databases to tackle smuggling and tax fraud.

Plans to train FBR staff on these new technologies were also reviewed, with a phased rollout set to begin with a pilot project in a major city.

Key sectors like cement, hatcheries, poultry feed, tobacco, and beverages will face stricter sales tax surveillance, expanding monitoring systems similar to those used in the sugar industry to tobacco, beverage, steel, and cement sectors.

The prime minister stressed that all measures be implemented swiftly, efficiently, and sustainably.

Meanwhile, Prime Minister Shehbaz Sharif has constituted a high-level political committee to oversee the implementation of the National Fiscal Pact.

The committee will also work toward building consensus on sharing the debt burden between the federation and provinces, and coordinate the development of critical water infrastructure amid Indian aggression.

Deputy Prime Minister Ishaq Dar of the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari will be the co-chairs of the eight-member committee, according to instructions issued by the Prime Minister's Office.

According to the decision taken after a meeting between the PML-N and the PPP in Lahore on Sunday, the other members include ministers for defence, planning, finance, economic affairs, and law, as well as the attorney general for Pakistan (AGP).