Aurangzeb plans tech-led tax reforms

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the government is pursuing changes in tax administration through reforms focused on people, processes and technology, according to an official statement issued on Monday.

During a meeting with a delegation of the Institute of Chartered Accountants of Pakistan (ICAP), the minister said continued engagement with professional bodies and industry stakeholders was important to ensure that economic and taxation policies remained responsive, practical and aligned with the country’s wider reform objectives.

According to the statement, Aurangzeb briefed the delegation on the government’s ongoing efforts to reshape the tax administration system through institutional changes and technology-based improvements. He stressed the need for institutional modernisation, simplification of procedures and greater automation to improve transparency, cut unnecessary human intervention and make compliance easier for taxpayers.

Tax Policy Office discussed

The finance minister also pointed to the operationalisation of the Tax Policy Office under the Finance Division, describing it as a key institutional reform intended to strengthen policy formulation and improve coordination between tax policy and tax administration.

The meeting further reviewed the expanding role of digital tools and technology in improving compliance, enforcement and revenue administration. Aurangzeb said AI-led production monitoring and technology-driven oversight mechanisms introduced in different sectors were helping improve documentation, strengthen compliance and reduce leakages.

ICAP presents proposals

The ICAP delegation shared a number of proposals during the meeting. These included suggestions related to documentation, group taxation structures, export-oriented services and harmonisation of tax treatment across sectors.

Discussions also covered steps aimed at improving competitiveness, facilitating investment, strengthening the ease of doing business and supporting effective revenue mobilisation while broadening the tax base.

According to the official statement, the exchange formed part of the government’s broader consultative engagement with professional and industry stakeholders on economic and tax policy matters.

"The finance minister stressed the importance of continued engagement with professional bodies and industry stakeholders to ensure economic and taxation policies remain responsive, practical and aligned with the country's broader reform objectives," the statement read.

The statement said the meeting focused on how administrative reform, digital systems and policy coordination could contribute to a more effective tax framework while also supporting documentation and compliance across sectors.