In a significant move to reform tax administration, Prime Minister Shehbaz Sharif led a crucial meeting in Islamabad to discuss the Federal Board of Revenue (FBR) reforms.
The four-hour meeting reviewed the progress of digitization and reforms in the Inland Revenue and Customs departments. A major highlight was the discovery of a massive Rs 800 billion fraud in tax refunds over the past four months. The meeting stressed the need for improved systems to prevent future fraud and to streamline the tax refund process.
The discussion also addressed a substantial backlog of 83,589 tax cases pending in various courts and tribunals. Plans were outlined to expedite these cases and improve the efficiency of tax appellate tribunals, especially concerning customs issues.
Modern technology is being utilized to identify two million potential taxpayers. Prime Minister Shehbaz emphasized the importance of integrating these individuals into the tax system without disproportionately burdening lower-income groups.
The Prime Minister directed the FBR to devise a comprehensive strategy for recovering illegal refunds and stressed the importance of fully digitizing the Fraud Detection and Investigation Department. Additionally, he outlined plans to centralize all ongoing reform projects within the FBR under a unified system, focusing on rapid software development and implementation.