The federal government is preparing AI-based tools and digital monitoring systems to fight tax evasion, as part of its upcoming federal budget for the fiscal year 2026-27.
A special government meeting chaired by Economic Affairs Minister Ahad Cheema reviewed key tax enforcement proposals being considered for the federal budget on Wednesday.
FBR Chairman Rashid Langrial delivered a detailed briefing on proposed measures targeting under-reporting, non-reporting, under-invoicing, tax evasion, and cross-border smuggling activities.
Among the proposals discussed was the introduction of AI-based systems designed to detect false or inaccurate data submitted by taxpayers in their official tax returns.
Digital monitoring mechanisms were also proposed to improve transparency and documentation, with a clear focus on strengthening the government’s existing tax enforcement infrastructure and systems.
Participants at the meeting discussed a proposed e-auction system that would allow customs authorities to sell confiscated goods through an online, transparent, and efficient process.
The system aims to eliminate existing inefficiencies in the disposal of seized goods and to ensure greater public accountability in how customs authorities handle confiscated items.
Minister Cheema stated that the government fully supports a tax system built on minimal human interaction, reducing opportunities for corruption and discretionary decision-making by officials.
All participants at the meeting agreed that the proposed tax reforms would support a business-friendly economic environment while also driving broader economic growth across the country.
