PM for timely implementation of tax reforms, swift action against tax evaders, smugglers

ISLAMABAD, Aug 28 (APP): Prime Minister Shehbaz Sharif on Friday directed the authorities concerned to ensure the implementation of reformative measures in the tax system within the stipulated timeframe and accelerate effective action against tax evasion, smuggling, and illegal businesses.

The prime minister, chairing the weekly review meeting on FBR reforms here, directed a third-party audit of reforms to bring transparency, effectiveness, and sustainability to the process, saying that digitalisation, production monitoring, and automated systems were key pillars of the FBR reforms.

During the meeting, the prime minister, who was briefed on the restructuring of PRAL, said that the government’s efforts to introduce tax reforms were aimed at the development of the country.

He said that the deployment of reputed goods evaluators in the FBR was a welcome step and appreciated the efforts of the Board’s chairman and his team in this regard.

He also instructed that the implementation of reforms should be ensured to modernise and strengthen the tax system, increase revenue collection, and completely eradicate smuggling.

The participants of the meeting were given a detailed briefing on the ongoing reforms in the FBR, particularly the restructuring of PRAL, the digitalisation of the tax system, and the measures taken to curb smuggling.

It was informed that step-by-step work was underway on IRIS 3.0, a new tax operating model, and a central data hub to make the tax system modern, integrated, and data-driven, as international consultants have also been hired to design IRIS 3.0. Swift work was underway on a project under IRIS 3.0 to make the tax system more effective, pilot auto-taxation, and utilise artificial intelligence and machine learning in the future to improve tax collection.

The participants were told that new senior-level appointments have been made in PRAL across various sectors, including technology, data security, operations, and the tax domain.

Regarding the positive impacts of faceless assessment in the customs sector, the meeting was informed that from January to June 2026, there was a 12% increase in average revenue per Goods Declaration (GD), and that the system has also helped improve the identification and monitoring of import irregularities.

The meeting was also briefed that the recruitment process of 280 goods evaluators was in its final stages and a Central Assessment Unit was being established in Islamabad that would be made operational by December 31, 2026, as an interim arrangement, before it becomes fully functional in a new complex by June 2027.

It was informed that in July 2025, transactions worth PKR 236 billion took place through digital invoicing, which increased to PKR 2.5 trillion in July 2026, with a target of PKR 4 trillion set for December this year.

Regarding the prevention of smuggling, several measures have been taken to prevent the illegal movement of petroleum products, including GIS tagging of all legal petrol pumps, tracking of petroleum products through GPS, connecting the ERP system of Oil Marketing Companies with the tracker, and a central tracking app for law enforcement agencies.

Through the Rahguzar app, 2,500 illegal petrol pumps were closed down, and legal action was initiated and digital monitoring of the sale of petroleum products and other measures were also being worked out.

The meeting was attended by federal ministers Azam Nazeer Tarar, Dr. Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, and Shaza Fatima Khawaja, Minister of State Bilal Azhar Kayani, Member of the National Assembly Usman Owaisi, State Bank Governor Jameel Ahmad, FBR chairman and relevant senior officials.