- Officials highlight Gap in taxes that will be connected to digitization.
- FBR’s contribution will increase to 14%, provincial revenue by 3%.
- The capacity of authority is improved by hiring about 1,600 auditorS.
Islamabad: Briefing the business leaders has the Federal Board of Revenue (FBR) revealed its transformation plan aimed at increasing Pakistan’s tax-to-BNP ratio from the current 10.24% to 18% in the medium term, The news Reported Thursday.
According to the plan, FBR’s contribution will increase to 14%, provincial income by 3%and the petroleum tax by 1%, which raises the total amount to 18%.
Officials emphasized that there is a significant gap in larger taxes that FBR intends to connect digitization and improved processes.
The meeting was led by FBR chairman Rashid Mahmood and participated by representatives of the overseas investor chamber for trade and industry (OICCI), Pakistan Business Council (PBC) and other leading business groups.
Member Inland Revenue Operations Dr Hamid Ateeq Sarwar gave a detailed presentation on the implementation of the transformation plan, which was approved by the Prime Minister in October 2024.
Participants were informed of reforms focusing on three key areas – people, technology and processes. The institution’s capacity is improved by hiring about 1,600 auditors to strengthen audit capacity.
Newly introduced officers will be trained at top universities to bring human resources in line with leading business organizations.
Agreements are made on the basis of integrity where officers are evaluated through a reward and rating system and offered a performance-based incentive package.
Participants received demonstrations of technology -based solutions in different sectors. They were informed that the reforms have already raised FBR’s tax-to-BNP ratio from 8.8% by 2023-24 to 10.24% by 2024-25.
Initiatives such as faceless customs assessment, although still in its early phase, have increased revenue per year. GD with 17.3% and improved duty efficiency in ports, reducing residence time and crashes.
Enforcement measures have also generated eight times more revenue in 2024-25 compared to the previous year.
President Langrial said that taxpayer’s relief remains a priority, with a new relief -department established in Karachi LTO, where senior officers will personally take care of taxpayers’ concerns.
He also proposed to form a joint committee consisting of representatives of PBC, OICCI and FBR to resolve questions related to valuation decisions and other issues.
