The Federal Board of Revenue will brief Prime Minister Shehbaz Sharif on Monday on the implementation of its faceless tax administration system, its transformation plan and digital measures aimed at closing a tax gap of nearly Rs1 trillion across 18 sectors, Business Recorder reported.
Sources told the publication that the FBR headquarters remained open on Sunday to finalise the presentation for the prime minister. The tax authority will brief the premier on the status of the faceless system on the Inland Revenue side, the use of artificial intelligence for analysing tax returns, the digital ecosystem, and comprehensive proposals for human-resource reforms and the revamping of the tax machinery.
According to the sources, integrity issues within the FBR’s field formations are also under the prime minister’s notice. The Prime Minister’s Office has directed the FBR to present comprehensive proposals on HR reforms and organisational restructuring, with a restructured board expected to strengthen tax administration and improve transparency.
The briefing will also cover digital monitoring of sales and production in major industries, due for completion by the end of December. The system is fully installed in the sugar, cement, tobacco, tiles and fertiliser sectors, and is being installed in textiles, packaged water, packaged juice and packaged milk.
The review comes as the government weighs a new tax collection agency or a deep restructuring of the FBR after repeated reforms failed to lift performance. The idea was floated at a top-level meeting last week and FBR Chairman Rashid Langrial has tasked officers with preparing a plan.
The financial pressure is stark. This year’s collection target of Rs15.263 trillion demands growth of more than 17 per cent, but first-quarter growth stood at only around 7 per cent. Of 19 million national tax number holders, just 6.9 million had filed returns by Thursday evening, against 8.5 million last tax year.
Adding to the strain, the IRS Officers Association has called a nationwide peaceful pen-down strike for Monday, demanding that officers be consulted before any decision affecting the service is taken.
