PM orders pilot launch of automated tax collection system in Islamabad

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday directed authorities to launch a pilot project in Islamabad for a proposed automated income tax collection system, according to a statement issued by the Prime Minister’s Office (PMO).

The decision was taken during a review meeting chaired by the prime minister on ongoing reforms in the Federal Board of Revenue (FBR). The meeting was attended by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani and other officials, the PMO said.

According to the statement, the meeting examined in detail steps aimed at modernising the tax system and increasing revenue collection. A broader reform plan was also presented to make inland revenue collection more effective, transparent and faceless.

Proposed system and scope

The PMO said the proposed new tax system would be able to detect under-declared income and assets by using data linked to property, vehicles and bank records. It added that modern technology and artificial intelligence would be deployed to automate the tax system and improve its transparency and effectiveness.

Addressing the meeting, the prime minister said the move towards an automated, modern and efficient tax management system through the use of modern technology would be an important step in the government’s reform agenda. According to the PMO, he said reducing human intervention and discretionary powers in tax collection had become necessary.

The prime minister also said implementation of the project would help increase revenue while strengthening transparency, fairness and public confidence in the tax system. He added that reforms in the FBR would continue as part of efforts to document the economy and widen the tax base, the PMO said.

New wings proposed under reform plan

The PMO said the proposed framework also includes the establishment of a National Faceless Audit Wing, a National Assessment Wing and a Field Operations Wing.

During the meeting, Prime Minister Shehbaz also paid tribute to provincial governments for what the PMO described as effective action against illegal cigarettes. The statement said enforcement measures are expected to generate an additional Rs40 billion in tax collection from the cigarette sector during the current year for the national exchequer.