Islamabad, October 24, 2024 – Prime Minister Shehbaz Sharif on Thursday instructed the Federal Board of Revenue (FBR) to foster a more taxpayer-friendly atmosphere in a bid to build trust and enhance tax compliance. The prime minister made these remarks while chairing a review meeting focused on FBR reforms, according to a press release from the PM Office.
During the meeting, Prime Minister Shehbaz stressed the importance of making the tax system more approachable and transparent. He emphasized the need for improving the experience of taxpayers, stating that a supportive environment could help bridge the trust gap between the tax-collecting authorities and the public.
In addition to promoting a more taxpayer-friendly atmosphere, the prime minister directed FBR officials to focus on capacity building. He highlighted the importance of equipping FBR officers with the skills and tools necessary to enhance their efficiency. “The capacity building of officers and their effective use in the field are crucial to strengthening the tax collection system,” he said.
Prime Minister Shehbaz also urged the FBR to embrace modern technology to improve tax collection and streamline revenue processes. He instructed the board to develop a robust strategy for restructuring Pakistan Revenue Automation Limited (PRAL), the technology arm of the FBR, which handles the automation of tax processes. “Modern technology can significantly improve tax collection mechanisms and reduce inefficiencies, creating a system that works better for both taxpayers and the government,” he noted.
Additionally, the prime minister directed the FBR to strengthen its systems to combat smuggling, which continues to be a major drain on Pakistan’s economy. He called for enhanced effectiveness in preventing illegal trade and urged FBR officers to carry out reforms aimed at curbing this issue.
The meeting also included discussions on ongoing FBR reform initiatives, with the prime minister urging the timely completion of these measures. He underscored that the reform process must be accomplished swiftly to ensure better tax collection and improve the overall efficiency of the revenue authority.
Prime Minister Shehbaz’s directives come amid ongoing efforts to increase tax revenues in Pakistan, where tax compliance remains low, and the informal economy is substantial. The focus on creating a more taxpayer-friendly atmosphere is expected to encourage more citizens to participate in the formal economy, thereby contributing to the country’s financial stability.
The FBR is expected to implement the prime minister’s instructions in the coming months, with a particular emphasis on technological innovation, capacity building, and curbing illegal trade through smuggling.