Meeting focuses on IT upgrades, faster Section 7E refunds, simplified tax processes and stronger taxpayer facilitation.
KARACHI: The Karachi Tax Bar Association (KTBA) and the Federal Board of Revenue (FBR) have agreed on a series of measures aimed at improving tax administration, strengthening digital infrastructure, simplifying compliance procedures and enhancing taxpayer facilitation across Pakistan.
The decisions were made during a meeting between FBR Chairman Rashid Mehmood Langrial and a KTBA delegation at the FBR headquarters on Wednesday. The discussions covered key taxation, policy and operational issues affecting taxpayers and tax practitioners.
KTBA President Mehmood Bikiya appreciated the FBR’s ongoing digital transformation initiatives, including the introduction of faceless audits and assessments, while both sides agreed to maintain regular engagement to resolve implementation challenges.
One of the key outcomes of the meeting was an agreement to strengthen coordination between the FBR and the Pakistan Revenue Automation Limited (PRAL) to improve the performance of tax filing systems and other digital taxpayer services. The FBR chairman directed Member Inland Revenue (Operations), Zubair Bilal, to hold monthly coordination meetings with KTBA to address technical issues and identify opportunities for system improvements.
The FBR also agreed to develop a Standard Operating Procedure (SOP) with defined timelines for resolving IT-related issues through the PRAL office in Karachi. In addition, PRAL Chief Revenue Domain Officer Zain ul Abideen Sahi was directed to establish a direct communication channel with KTBA to replace lengthy written correspondence and ensure quicker resolution of technical problems on the IRIS portal.
The meeting also discussed refunds arising from the Federal Constitutional Court’s ruling declaring Section 7E ultra vires. KTBA urged the FBR to process such refunds proactively instead of requiring taxpayers to complete conventional refund procedures. The chairman agreed and directed the Board’s Legal Wing to develop a streamlined refund mechanism for eligible taxpayers.
To promote foreign investment, KTBA called for faster approval of tax exemption cases. The FBR chairman assured the delegation that efforts were underway to simplify and expedite these approvals to create a more investment-friendly tax environment.
The two sides also discussed increasing awareness of the Shopkeepers Scheme through joint outreach by bar associations and trade bodies. The FBR informed participants that a simplified tax return form for shopkeepers is expected to be introduced by August 10, 2026, to encourage greater participation in the scheme.
The chairman also highlighted the FBR’s use of advanced data analytics and algorithms to identify under-reporting of income and tax misdeclarations. He urged tax practitioners to guide taxpayers towards accurate and complete tax return filing to strengthen voluntary compliance and reduce enforcement actions.
The meeting was attended by senior FBR officials, including Member (Strategic Transformation) Dr. Hamid Ateeq Sarwar, Member (Inland Revenue-Policy) Sajjad Taslim Azam, and senior representatives of KTBA, including Vice President Saud ul Hassan, General Secretary Shams Mohiuddin, and former presidents of the association.
Both KTBA and the FBR reaffirmed their commitment to maintaining regular dialogue and close coordination to improve tax administration, facilitate taxpayers, accelerate digital reforms and strengthen Pakistan’s tax compliance framework.