Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to conduct a third-party audit of the ongoing tax reforms, saying the measures were designed to strengthen the development.
Chairing a review meeting on FBR reforms, the prime minister stressed the need for transparency, effectiveness and sustainability throughout the reform process.
Officials briefing the meeting said digitalisation, production monitoring and automated systems formed the core pillars of the reform agenda.
According to a statement issued by the Prime Minister Office, Mr Sharif directed authorities to implement the reforms within the stipulated timeframe and to intensify enforcement action against tax evasion, smuggling and illegal businesses.
He said the reforms should be implemented to modernise and strengthen the tax system, boost revenue collection, and completely eradicate smuggling.
The meeting received a detailed briefing on the ongoing reforms of FBR, including the restructuring of the Pakistan Revenue Automation Limited (PRAL), digitalisation of the tax system, and steps taken to curb smuggling.
Officials informed the meeting that work was progressing in phases on IRIS 3.0, a new tax operating model, along with a central data hub aimed at making the tax system modern, integrated and data-driven. International consultants have been engaged to help design IRIS 3.0.
The meeting was further told that work was under way on a project under IRIS 3.0 to enhance the effectiveness of the tax system, pilot auto-taxation, and eventually deploy artificial intelligence and machine learning to improve tax collection.
