Islamabad: The government is considering implementing a digital monitoring system and AI-based tax enforcement reforms as part of the upcoming finance bill, in a bid to address the tax gap and improve revenue collection. This initiative was discussed in a meeting chaired by Federal Minister for Economic Affairs Ahad Cheema, with participation from key government officials including the Federal Minister for Climate Change Musadik Malik and Chairman of the Federal Board of Revenue Rashid Mahmood Langrial.

According to Press Information Department, the FBR team presented several proposed tax enforcement measures aimed at tackling issues such as underreporting, non-reporting, under-invoicing, tax evasion, and smuggling. The proposals focused on technology-driven solutions to enhance transparency, documentation, and enforcement. Among the key measures under review are digital monitoring mechanisms and AI systems designed to detect inaccuracies in tax returns and monitor underreporting more effectively.

The meeting also considered introducing an e-auction system for confiscated goods by customs authorities to improve transparency and efficiency. Minister Cheema highlighted the government’s commitment to tax reforms that support economic growth without impeding the business environment. He reiterated the importance of a tax system with minimal human interaction and emphasized fostering a business-friendly atmosphere.

Minister Cheema instructed the FBR to refine the proposed measures, ensuring they are practical, technology-oriented, and capable of delivering effective results. The government’s focus remains on broadening the tax base, optimizing revenue, enhancing transparency, and modernizing the tax administration system to foster sustainable economic growth and fiscal stability.