FBR sets up faceless tax audit, assessment centre in Islamabad

Islamabad: The Federal Board of Revenue (FBR) has established the National Faceless Centre (NFC) in Islamabad, aimed at reducing official discretion and direct contact between tax officials and taxpayers. This initiative, based on Pakistan’s New Tax Operating Model, was approved by the government in June and seeks to eliminate corruption by preventing physical contact between tax authorities and taxpayers. The NFC was approved by the Board in Council, a body chaired by the FBR chairperson.

The NFC is a significant reform that changes how tax audits and assessments are conducted in Pakistan. Previously, taxpayers had to deal with specific officers in specific offices, often in person, during audits. Under the new system, contact ends with the taxpayer. Cases are now selected by a computerized, risk-based system rather than by any officer, and each case is automatically assigned to an officer who could be located anywhere in the country.

The taxpayer remains unaware of who the officer is, and the officer has no influence over which case is assigned to them.

Each case passes through three distinct hands. One officer conducts the audit, a second makes the assessment, and a third reviews the work for quality before any order is issued. No single officer controls a taxpayer's case from start to finish. All notices, replies, and hearings will occur electronically through the FBR’s IRIS system. Physical verifications or recoveries, where required by law, will be handled by a separate field team.

The NFC is legally authorized by the Finance Act, 2026 and will be headed by an Inland Revenue Chief Commissioner. Dedicated wings for faceless audit, assessment, quality control, and field operations will be established. A Programme Management Unit has been set up to oversee the rollout of this reform. The objective is to ensure the same rules apply to every taxpayer, decisions are based on data instead of personal judgment, and to eliminate face-to-face interactions that have frequently caused complaints.

The FBR anticipates that the NFC will expedite, streamline, and make tax proceedings more transparent, fair, and efficient for taxpayers across Pakistan.