ISLAMABAD:
The federal government has proposed sweeping changes to Pakistan’s tax administration system through the Finance Bill 2027, including the establishment of a national faceless centre, introduction of faceless audit and assessment mechanisms, and stricter enforcement measures against tax evasion and false invoicing.
According to details, changes to the tax law proposed in the federal budget for the financial year 2026-27 would empower the Federal Board of Revenue (FBR) to establish a national faceless center with the aim of reducing direct interaction between tax authorities and taxpayers.
Under the proposed framework, tax cases will be assigned to officials through an automated system, while audits and assessments will be conducted electronically.
Sources said the faceless audit and assessment system is meant to minimize human intervention and discretionary powers in the tax administration.
All tax-related matters will be conducted electronically, while the identity of the officers working at the faceless center will remain confidential.
Their decisions could not be challenged based on identity, although physical verification of businesses, assets and investments would continue.
In a parallel move, the FBR has decided to intensify its efforts against tax fraud and false invoicing. The finance bill proposes stiff fines and tougher enforcement measures for companies that fail to integrate into the digital tax system.
According to the proposed changes, companies that fail to digitally integrate with the FBR could face fines of up to Rs1 million, with fines increasing to Rs5 million in case of continued non-compliance. Sources said companies that fail to complete the integration within the prescribed time frame may also be sealed.
The finance bill also proposes strict action against the issuing of false and fictitious tax invoices.
Those found issuing false invoices could face fines equal to the full value of the invoice, while authorities are also considering publishing a public list of offenders.
