FAISALABAD: Pakistan’s tax authorities are aiming to eliminate tax evasion and the long-standing issue of non-filers through sweeping reforms and digital transformation within the Federal Board of Revenue (FBR), senior officials said on Sunday.
Addressing an awareness seminar on promoting tax culture at the Faisalabad Chamber of Commerce and Industry, Secretary Tax Education Muhammad Muti-ur-Rehman Mumtaz said the FBR’s ongoing reforms are designed to create a transparent, automated, and enforcement-driven system that minimizes human intervention.
“Following extensive reforms and structural changes, the concepts of tax evasion and non-filers will be completely eliminated,” he said, adding that the Tax Education and Facilitation Wing is playing a central role in expanding the tax base and improving compliance.
Mumtaz noted that the reform process began two years ago with consultations involving key stakeholders, resulting in policy measures aimed at addressing systemic inefficiencies. A major focus has been on digitalization, which has reduced discretionary powers of officials and strengthened accountability mechanisms.
He highlighted that advanced monitoring systems have already delivered significant results. In the sugar sector alone, enhanced monitoring led to an increase of Rs103 billion in sales tax revenue within two months. Similar gains have been recorded in the textile, steel, beverage, and cement industries, with automated systems ensuring accurate data collection and minimizing disputes.
According to the official, 1.7 million new taxpayers have been added to the tax net as a result of these reforms. Instead of aggressive enforcement, authorities are encouraging voluntary compliance by making it increasingly difficult and costly for non-filers to access services such as foreign travel and property purchases.
He also pointed out that each citizen’s Computerized National Identity Card (CNIC) now effectively serves as a tax identification number, linking financial transactions and helping detect irregularities, including fake accounts.
Discussing the Point of Sale (POS) system, Mumtaz said service providers are required to collect taxes on behalf of the government, with strict action taken against those failing to comply.
Faisalabad Chamber President Farooq Yousaf Sheikh emphasized the importance of cooperation between the private sector and government institutions, describing them as “two wheels of the same vehicle” essential for economic stability. He urged businesses to adopt a culture of voluntary tax compliance, noting that such practices are standard globally.
Meanwhile, Abdul Rehman Sheikh, Second Secretary Facilitation at FBR, revealed that a reward scheme has been introduced for individuals who report tax evasion, while 3.3 million potential taxpayers have been identified through electricity billing data. Initial notices have already been issued to 100,000 individuals.
The seminar concluded with a question-and-answer session and the presentation of commemorative shields, marking continued engagement between the FBR and the business community to strengthen Pakistan’s tax system.