PM directs FBR to continue enforcement against smuggling, tax evasion, illegal businesses

ISLAMABAD, Aug 10 (APP): Prime Minister Muhammad Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to continue effective enforcement against smuggling, tax evasion, and illegal businesses across the country.

Chairing a review meeting regarding ongoing FBR reforms, the prime minister directed that implementation of the FBR reforms be further accelerated. He welcomed the growing confidence of the business community in the ongoing tax reforms.

The prime minister further instructed that the Chairman FBR and senior officers should stay in Lahore for two days every month, in addition to their monthly stay in Karachi. “The FBR should accelerate enforcement measures to achieve the prescribed revenue target.”

The prime minister appreciated the FBR’s actions against illegal cigarette manufacturing factories in Chakwal and Swabi and directed that officers and personnel of good reputation and integrity be appointed to all sensitive posts and departments of the FBR.

He also directed the timely completion of the proposed Faceless System for Inland Revenue. The complete rollout of the Faceless System should be ensured by 2027.

During the meeting, the prime minister was informed that the first phase of the Faceless Inland Revenue System will become operational from October 1, 2026 and the AI- and advanced technology-based Faceless System was an important component of the FBR’s recent digitization reforms.

The system will include a National Faceless Audit Wing for the audit of tax returns and a Faceless Assessment Unit for assessments. Under the Faceless System, jurisdiction, over tax cases will be assigned on a random basis, irrespective of geographical boundaries.

The Chairman FBR also briefed the prime minister on his monthly stay in Karachi during the first week of each month, as directed by the Prime Minister, and his meetings with the business community.

The chairman said that he met representatives of seven major trade organizations in Karachi and listened to their concerns.

He said that the issues faced by the business community were resolved promptly during his stay in Karachi.

Time-bound SOPs are being issued for the payment of tax refunds to exporters, he said and added that an intelligence-based operation was conducted against an illegal cigarette factory in Chakwal.

The factory was sealed, while stocks of illegal cigarettes and machinery were seized, and an intelligence-based operation was also conducted against an illegal cigarette factory in Swabi, the meeting was briefed.

Federal Ministers Azam Nazeer Tarar, Dr. Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Shaza Fatima Khawaja, Special Assistant Haroon Akhtar, State Bank Governor Jameel Ahmad, and senior officials of the relevant institutions attended the meeting.