FBR team to brief PM on faceless system today

The Federal Board of Revenue (FBR) is set to inform Prime Minister Shehbaz Sharif about the progress of the faceless system on the Inland Revenue side, as well as the transformation plan and digital measures aimed at reducing the tax gap of over one trillion rupees in 18 sectors. Sources confirmed that the FBR headquarters remained open on Sunday to finalize the presentation for the Prime Minister.

The tax authorities will discuss implementation status, the use of AI for returns analysis, digital ecosystem, comprehensive proposals for human resource (HR) reforms, and the revamping and restructuring of the tax machinery. The integrity issues of the FBR’s filed formations will also be addressed. The sales production in major industries is expected to be completed by the end of December to reduce the gap between actual and potential tax collection.

The tax gap stands at approximately Rs 1 trillion across 18 sectors. The digital monitoring system has been fully installed in sectors such as sugar, cement, tobacco, tiles, and fertilizers, and is in the process of being installed in textiles, packaged water, juice, and milk sectors. Equipment purchases for steel, poultry, and tires sectors were completed by October 15, while for tea, household electronics, leather, paper and board, and oil and ghee sectors, it will be done by October 30.

The Prime Minister's office has asked the FBR to present comprehensive HR reforms and the restructuring plan to the Prime Minister. A high-level review meeting chaired by the Prime Minister will oversee the ongoing FBR reforms. Tax authorities will brief the PM on digital ecosystem and the aim to build an integrated system connecting the entire economic value chain, from raw material production and import, to manufacturing and consumer purchases.