Pakistan to Pilot Automated Tax Collection System in Islamabad

Prime Minister Shehbaz Sharif has directed the immediate rollout of a pilot project for an automated income tax collection system in Islamabad. The initiative aims to modernize tax administration and enhance revenue collection through technological integration.

During a review meeting of the Federal Board of Revenue (FBR) reforms, attended by the finance minister and other officials, a comprehensive plan was presented. This plan focuses on making inland revenue collection more "effective, transparent and faceless." The new system is designed to leverage modern technology and artificial intelligence to identify undeclared income and assets by analyzing data related to properties, vehicles, and bank accounts.

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project for an automated, modern and efficient tax management system through the effective use of modern technology would prove to be a milestone in the government’s reform agenda

Prime Minister Sharif emphasized that the automated, modern, and efficient tax management system would be a significant milestone in the government's reform agenda. He highlighted the importance of minimizing human intervention and discretionary powers within the tax collection process to foster transparency, fairness, and public trust. The reforms are intended to support the documentation of the economy and broaden the tax net.

Additionally, the meeting acknowledged the provincial governments' efforts in combating illegal cigarettes, which is expected to generate an additional Rs40 billion in tax revenue this year. The proposed reforms also include establishing specialized wings for faceless audit, assessment, and field operations.

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Through enforcement measures, additional tax collection of Rs40 billion from the cigarette sector is expected this year for the national exchequer