Pakistan is set to take a major step toward tax reform as Prime Minister Shehbaz Sharif has directed the launch of a pilot project for an Automated Tax Collection System in Islamabad. The initiative is aimed at improving efficiency, transparency, and revenue generation through the use of modern technology.
The directive was issued during a high-level meeting reviewing ongoing reforms within the Federal Board of Revenue (FBR). Senior government officials, including Finance Minister Muhammad Aurangzeb, participated in discussions on modernizing Pakistan’s tax administration framework.
According to officials, the proposed Automated Tax Collection System will use data from property records, vehicle registrations, and banking transactions to identify under-reported income and assets. The system is designed to strengthen compliance while reducing opportunities for tax evasion.
A key feature of the project is the use of artificial intelligence and digital tools to automate tax assessments and collection processes. Authorities believe that minimizing human intervention will help reduce discretionary decision-making and improve overall accountability.
Prime Minister Shehbaz described the Automated Tax Collection System as a significant milestone in the government’s reform agenda. He emphasized that technology-driven governance is essential for creating a fair and effective taxation structure.
Officials also discussed plans to establish a National Faceless Audit Wing, a National Assessment Wing, and a Field Operations Wing under the proposed framework. These institutions are expected to support digital tax administration and streamline enforcement procedures.
The government expects the Automated Tax Collection System to increase tax revenues, expand the tax base, and strengthen public confidence in the taxation process. Authorities maintain that continued FBR reforms will play an important role in documenting the economy and promoting sustainable fiscal growth.
