FBR unveils transformation plan to OICCI, PBC for stronger tax regime

• Chairman Mahmood highlights reforms focused on people, technology, and processes
• Says 1,600 new auditors to be hired while officers will receive training at leading universities
• Claims tax-to-GDP ratio rises from 8.8% to 10.24% in one year under reforms

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday held a meeting with representatives of the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Pakistan Business Council (PBC) to present a comprehensive overview of its ongoing transformation plan.

The session, chaired by FBR Chairman Rashid Mahmood, was attended by senior business leaders. Member Inland Revenue (Operations) Dr. Hamid Ateeq Sarwar delivered a detailed presentation on the reform programme, approved by the Prime Minister in October 2024.

Participants were briefed that the plan is centered on three pillars—people, technology, and processes—aiming to overhaul FBR’s structure and operations. To build institutional capacity, around 1,600 auditors are being recruited to enhance audit functions, while newly inducted officers will undergo training at leading universities to match corporate-sector standards. Key appointments, it was stressed, are being made on merit, with integrity assessed through a Reward and Rating System and backed by a performance-linked incentive package.

The business leaders were informed that 21st-century reforms must be technology-driven. In this regard, FBR has introduced digital production monitoring across major sectors including sugar, fertilizer, cement, beverages, tobacco, poultry, and textiles. The plan also emphasizes integration of data sources and digitalization of processes, enabling economic activity to be linked directly with tax return filings. This will help identify tax evaders, close revenue gaps, and select audit cases using AI-based risk parameters.

Participants were also given live demonstrations of technology-driven solutions. The FBR highlighted key outcomes of the reforms: tax-to-GDP ratio has risen from 8.8% in 2023-24 to 10.24% in 2024-25; the new Faceless Customs Appraisement initiative, though in its early stages, has already boosted revenue per GD by 17.3%; and enhanced customs efficiency has reduced port dwell times and demurrages. Furthermore, tax enforcement revenue has increased eightfold in 2024-25 compared to last year.

On the facilitation front, the Chairman informed that a dedicated Facilitation Division has been set up at LTO Karachi, where senior officers will personally address taxpayer concerns. He also proposed the formation of a joint committee of PBC, OICCI, and FBR representatives to resolve valuation rulings and related issues.

Business representatives lauded the pace and outcomes of the reforms, noting that they would broaden the tax base while easing the burden on compliant taxpayers.

Concluding the meeting, the FBR Chairman thanked participants for their engagement, emphasized the value of continued stakeholder dialogue, and expressed hope for more such interactive sessions in the future. The OICCI and PBC representatives also appreciated FBR’s outreach and urged continuation of this practice.