Tax reforms focus on public ease, transparency

July 14, 2025 (MLN): To ease the filing process for salaried individuals and common citizens, a simplified, digital, and Urdu-enabled tax return system was introduced for availability starting Tuesday, stated Prime Minister Shehbaz Sharif.

Chairing a high-level meeting in Islamabad on Monday to assess FBR reforms, he emphasized that digital invoicing and tax returns should be designed to benefit the public, particularly the salaried class.

He directed that these forms be concise, linked with a central database, and supplemented with a nationwide awareness campaign to promote voluntary compliance.

To improve accessibility, the Prime Minister instructed that the tax return forms be made available in Urdu, and a dedicated helpline be launched for public assistance.

Additionally, he called for the introduction of digital invoicing in Urdu and urged the provision of special facilities to small and medium-sized businesses for integration into the digital invoicing system.

Third-party validation and transparency were highlighted as priorities, with Shehbaz Sharif reiterating that reforms must focus on convenience and credibility.

He acknowledged the efforts of the Finance Minister, the economic team, FBR Chairman, and their staff in advancing these reforms.

For the first time in Pakistan's history, an AI-based tax assessment system has been introduced, and the Prime Minister lauded FBR's success in its deployment.

He stated that expanding the tax base and reducing burdens on the poor remain key government goals.

The meeting was informed that FBR’s Command and Control Unit designed for centralized data access and decision-making—will become operational by September.

Updates were also shared on digital invoicing, e-Bilty, simplified returns, the AI-powered assessment system, and cargo tracking.

Traders will benefit from the ability to submit advance goods declarations before ship arrivals, with full exemptions from upfront taxes and duties.

This move is expected to increase advance declarations from 3% to over 95%, allowing containers to move directly from ports to factories.

As part of the digital invoicing system, businesses large and small will generate receipts through FBR's online platform at the time of sale or purchase.

Approximately 20,000 businesses are expected to be linked to the system, which has already processed 8,000 invoices worth Rs11.6 billion within a month.

The platform features a taxpayer portal, monitoring dashboard, and integration with PRAL at no cost.

Trader training is ongoing to ensure smooth adoption.

Once fully operational, the system will automate sales tax return filings, align transactions with international 8-digit HS codes, and eliminate fraudulent invoicing practices.

It will also improve performance evaluation of the sales tax framework, as per the press release issued today.

Training programs are already underway to assist businesses in the transition.

The meeting also discussed the cargo tracking and e-Bilty system, which will integrate real-time monitoring of goods movement and tax payments with AI-driven enforcement tools.

It was shared that Türkiye is assisting Pakistan in aligning the system with global standards.

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