FBR directed to continue efforts to enhance tax collection

FBR directed to continue efforts to enhance tax collection

Federal Minister for Finance and Revenue, Shaukat Tarin, has lauded the Federal Board of Revenue (FBR) for achieving record-breaking revenue collection in July 2021, signaling a robust start to the fiscal year.

Tarin, who chaired the meeting of the APEX Committee on broadening the tax base and integrating retail businesses at the Finance Division, directed the FBR to persist in its efforts to enhance tax collection.

The meeting, attended by SAPM on Finance and Revenue Dr. Waqar Masood, Chairman FBR, and other senior officers, aimed to review the progress and strategies for expanding the tax base and integrating retail businesses into the formal taxation framework.

During the meeting, Minister Tarin commended the FBR for achieving a revenue collection of Rs. 413 billion in July 2021, surpassing the set target for the month by an impressive 21 percent. He emphasized that this remarkable accomplishment is a testament to the government’s prudent policies, which are contributing to sustained economic growth.

Tarin highlighted the importance of fiscal consolidation efforts, stating, “This clearly indicates that fiscal consolidation efforts are on track with a key focus on broadening the tax base by using artificial intelligence and innovative ways for bringing more people into the tax net.” The use of advanced technologies such as artificial intelligence is seen as a crucial tool in identifying potential taxpayers and streamlining the tax collection process.

The Finance Minister’s emphasis on leveraging innovative methods underscores the government’s commitment to adopting modern technologies to improve tax administration and reduce evasion. The integration of artificial intelligence is expected to enhance the efficiency of tax collection and make the system more responsive to the changing economic landscape.

In his concluding remarks, Minister Tarin directed the FBR to maintain its diligent efforts in enhancing tax collection. The call for continued diligence reflects the government’s recognition of the importance of a robust revenue collection system to finance essential public services and infrastructure development.

The meeting comes at a pivotal time when the government is actively pursuing initiatives to broaden the tax base and bring more businesses and individuals into the formal tax net. The commitment to innovative approaches and the commendation for the FBR’s achievements indicate a concerted effort to create a more comprehensive and efficient taxation framework in Pakistan.

As the government endeavors to strengthen fiscal policies, the sustained focus on enhancing tax collection is expected to contribute significantly to economic stability and development, ensuring a more equitable distribution of the tax burden and supporting the nation’s long-term financial sustainability.