Government prioritizes tax reforms to boost revenue

July 23,2025(MLN): The government has prioritized tax system reforms as a central part of its agenda to enhance national revenue and ease the financial burden on the common man.

This stance was reaffirmed during a meeting on FBR reforms chaired by Prime Minister Shehbaz Sharif in Islamabad.

He stated that digitization of the FBR has contributed to meeting revenue targets and described the improvements in the tax system as a positive development.

He stressed the need for timely measures to establish a system that meets modern standards, as per the pres release issued.

A directive was issued to formulate a comprehensive restructuring plan for the FBR’s digital wing, with clearly defined timelines.

Emphasis was placed on engaging all stakeholders in the reform process and ensuring that the interests of businessmen, traders, and taxpayers are prioritized.

Instructions were also given to strengthen enforcement mechanisms to tackle the informal economy. The meeting was informed that the tax-to-GDP ratio recorded a historic rise of 1.5% due to FBR enforcement efforts and reforms.

Tax filers increased from 4.5 million to 7.2m, and an additional Rs455 billion was collected in income tax from the retail sector compared to the previous year.

It was also highlighted that the FBR’s faceless customs clearance system will cut clearance time from 52 hours to 12 hours in the next three months while increasing revenue.

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