Govt eyes technology driven tax system

May 11, 2026 (MLN): Technology-driven tax reforms, AI-based monitoring systems, and measures aimed at improving documentation and compliance came under discussion at the Finance Division.

The matters were discussed during a meeting between Federal Minister for Finance and Revenue Muhammad Aurangzeb and a delegation of the Institute of Chartered Accountants of Pakistan (ICAP).

During the meeting, Senator Muhammad Aurangzeb emphasized the importance of continued engagement with professional bodies and industry stakeholders to ensure economic and taxation policies remain practical, responsive, and aligned with the Government’s broader reform agenda.

The Finance Minister shared details of the Government’s ongoing efforts to modernize the tax administration system through reforms focused on people, processes, and technology.

He highlighted institutional modernization, process simplification, and enhanced automation aimed at improving transparency, reducing unnecessary human intervention, and facilitating taxpayers.

He also termed the operationalization of the Tax Policy Office under the Finance Division an important institutional reform designed to strengthen policy formulation and improve coordination between tax policy and administration.

Discussions further focused on the growing role of digital systems in revenue administration, compliance, and enforcement.

The Finance Minister noted that AI-led production monitoring and technology-driven oversight mechanisms introduced across multiple sectors are helping improve documentation, strengthen compliance, and reduce leakages within the system.

The ICAP delegation presented a range of proposals relating to documentation, group taxation structures, export-oriented services, and harmonization of tax treatment across sectors.

Discussions also covered measures aimed at improving competitiveness, facilitating investment, strengthening ease of doing business, supporting revenue mobilization, and broadening the tax base.

Senator Muhammad Aurangzeb acknowledged the recommendations shared by the delegation and said the proposals would be reviewed as part of the ongoing budget formulation process.

He reiterated the Government’s commitment to building a transparent, technology-driven, and facilitative tax system that supports economic growth, encourages documentation, and strengthens institutional effectiveness.

The delegation was led by Samiullah Siddiqui and included Jehanzaib Amin, Ahmed Raza Mir, and Zeeshan Ijaz.

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