ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif has instructed the Federal Board of Revenue to establish a scientific methodology for evaluating tax potential across various sectors. The directive aims to enhance revenue generation and improve the efficiency of tax administration, as discussed in a recent weekly review meeting on FBR reforms held in Islamabad.
According to Radio Pakistan, the Prime Minister underscored the importance of identifying individuals and businesses involved in undocumented economic activities and tax evasion, in collaboration with the power sector, and taking legal action against them. He also set a deadline for the FBR to operationalize a digital production monitoring system by December in sectors such as textiles, beverages, steel, and more, with a broader implementation across manufacturing by the year’s end.
The meeting highlighted that the tracking system is currently operational in sectors including sugar, cement, and tobacco, with plans to extend it to additional sectors possessing a tax potential of over 700 billion rupees. Furthermore, efforts are underway to introduce the system in nine more production sectors, with an estimated tax potential of 560 billion rupees.
During the meeting, the Prime Minister lauded the efforts of the FBR Chairman and his team, noting the alignment between production data and FBR records in the sugar sector as a positive outcome of the tracking system. He also instructed the FBR officials to conduct regular visits to Karachi to address business community concerns and called for an immediate third-party audit of customs bonded warehouses to rectify any irregularities.
The meeting was informed of progress in various areas, including the appointment of 957 third-party auditors and ongoing recruitment for 280 goods evaluators. Additionally, it was noted that the customs faceless system has contributed to reduced goods clearance times and improved revenue collection. The Alternative Dispute Resolution Committees were reported to have resolved 152 out of 377 tax cases in 90 days, recovering 54 billion rupees.