Islamabad, November 24, 2025 – The Federal Board of Revenue (FBR) announced significant improvements in Pakistan’s tax administration, crediting ongoing digitalization efforts for strengthening tax operations and enhancing taxpayer services.
According to official documents of FBR, the Directorate General of Information Technology & Digitalization (DG IT&D) is driving a comprehensive transformation aimed at improving user experience and modernizing core tax processes. Under its Service Design and User Experience (UX) program, extensive research has been conducted to better understand taxpayers’ needs. These insights are now being applied to redesign the income tax registration and return filing system, making them simpler, faster, and more user-friendly.
The tax authority has also introduced a taxpayer facilitation Chatbot, which assists users with queries in real time. In addition, FBR has increased digital communication through automated system alerts, emails, and SMS messages, helping taxpayers stay updated on compliance requirements and deadlines.
FBR revealed that automated risk management and audit selection modules are currently in development to make audits more transparent and efficient. Moreover, the authority has implemented production monitoring in the textile, cement, and beverage sectors using its advanced Digital Eye technology. Work on a digital invoicing and inventory management system is also progressing steadily.
Beyond taxpayer facilitation, the DG IT&D is formulating a robust Data Governance and Security Policy to ensure taxpayer data confidentiality. As part of its broader modernization initiative, FBR has rolled out the Track & Trace System across five major sectors—sugar, cement, beverages, tobacco, and petroleum—to monitor production volumes and reduce tax evasion.
The digital invoicing initiative, once fully implemented, is expected to enable businesses to report real-time sales data, ensuring accurate tax assessments. Efforts are also underway to integrate databases across various government departments, helping eliminate silos and improve cross-verification and data accuracy.
To support these digital enhancements, FBR is replacing outdated hardware in data centers and field offices with state-of-the-art infrastructure. A new three-tier data center with 24/7 availability and advanced security protocols is also under development, ensuring reliability and improved performance for all digital tax systems.