ISLAMABAD – The Federal Board of Revenue (FBR) presented its transformation plan to representatives of the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Pakistan Business Council (PBC). The initiative, known as the FBR transformation plan, aims to overhaul tax systems by focusing on people, technology, and processes. Chairman FBR Rashid Mahmood chaired the meeting.
Key Features of the FBR Transformation Plan
Member Inland Revenue Operations, Dr. Hamid Ateeq Sarwar, explained the approved reforms. The plan focuses on building institutional capacity, expanding the workforce, and training officers at top universities. Around 1,600 new auditors will be hired to strengthen audit capacity. Appointments will prioritize integrity, with officers evaluated through a reward and rating system tied to incentives.
Technology-Driven Reforms
The FBR transformation plan emphasizes technology as the driver of 21st-century tax reforms. Digital production monitoring has been introduced in key sectors including sugar, cement, beverages, poultry, and textiles. Data integration and digital processes will link economic activity to tax filings, making it easier to identify tax evasion. Audit selections will use AI-based risk parameters, ensuring greater transparency and accountability.
Business Community’s Response
Business representatives commended the reforms for improving efficiency. They noted a rise in FBR’s tax-to-GDP ratio from 8.8% in 2023–24 to 10.24% in 2024–25. The Faceless Customs Appraisement initiative has increased revenue per GD by 17.3%, while also cutting dwell time and demurrages at ports. Enforcement efforts have grown significantly, with revenue collection from enforcement increasing eight times compared to last year.
Focus on Taxpayer Facilitation
The Chairman highlighted new taxpayer facilitation measures. A dedicated Facilitation Division has been set up at LTO Karachi, where senior officers will personally address taxpayer concerns. He also proposed forming a joint committee of FBR, PBC, and OICCI to resolve valuation rulings and related issues.
Future Prospects of the FBR Transformation Plan
Business leaders praised the FBR transformation plan and expressed hope that it would broaden the tax net while reducing the burden on compliant taxpayers. Chairman Rashid Mahmood thanked the participants and stressed the importance of ongoing dialogue with stakeholders. Both OICCI and PBC representatives welcomed the reforms and urged FBR to continue engaging with the business community.
