Pakistan’s Federal Board of Revenue (FBR) has introduced an FBR AI tax strategy aimed at achieving a tax collection target of Rs15.264 trillion for the upcoming fiscal year. The initiative relies on artificial intelligence, stronger tax enforcement, and digital systems to improve revenue collection while maintaining tax relief for selected sectors.
FBR Chairman Rashid Mahmood Langrial said the government has provided tax relief to salaried individuals, exporters, and the real estate sector. He added that reforms also include rationalizing the super tax and introducing a fixed tax scheme for retailers without compromising the overall revenue objective.
As part of the FBR AI tax strategy, the tax authority will implement a digital algorithmic settlement mechanism to resolve tax disputes more efficiently. The new system is expected to reduce delays, improve transparency, and simplify tax administration.
The chairman also announced that monthly audits of the General Sales Tax (GST) system will continue during the next fiscal year. According to FBR, regular monitoring and improved compliance are expected to increase overall tax receipts and reduce revenue leakages.
Langrial said economic indicators such as GDP growth, large-scale manufacturing (LSM), and inflation measured through the Consumer Price Index (CPI) will play a significant role in achieving the ambitious tax target. Improved economic activity is expected to support higher revenue generation.
He further stated that under commitments made with the International Monetary Fund (IMF), the government expects to generate an additional Rs1.02 trillion through 26 revenue-enhancing measures, including policy reforms, better enforcement, improved compliance, and selected tax rate adjustments.
The FBR AI tax strategy reflects the government’s broader effort to modernize tax administration through technology while supporting economic growth. Officials believe that stronger digital enforcement and improved compliance will help the FBR meet its Rs15.264 trillion revenue target during FY2026-27.
