FBR, Karandaaz Pakistan join forces for digital tax revolution

March 16, 2024 (MLN): In line with the vision of the Prime Minister of Pakistan to transform Federal Board of Revenue (FBR) into a Digital Tax Administration, FBR has entered into an agreement with Karandaaz Pakistan for the Digitalization of Tax System, a press release issued on Friday stated.

FBR has put considerable focus on the automation of its processes and digitalizing of the economy.

These initiatives reduce the cost of compliance of taxpayers, document the economy, expand the tax base and lead FBR on a sustainable path to revenue growth.

FBR will be collaborating with Karandaaz to develop a comprehensive digital strategy for realizing the digital transformation of FBR, its digitalization initiatives and their implementation.

Under this agreement, Karandaaz Pakistan, an impact investment platform that drives sustainable economic growth and strengthens financial and social protection systems for inclusion will assist FBR in the assessment of the business needs, existing IT infrastructure and systems, and business processes.

This will help to establish the context and scope for digitalizing the tax system of Pakistan using service-oriented and tax payer centric use cases.

At the signing ceremony, Mr. Malik Amjed Zubair Tiwana, Chairman of FBR, stated that FBR has put considerable focus on the automation of its processes and digitalizing the economy including supply chain digitalization.

Multiple endeavors have been undertaken to address the challenge of the undocumented economy and expand the tax base.

FBR will now be collaborating with Karandaaz to realize the digital transformation of FBR, its digitalization initiatives and their implementation.

Muhammad Aurangzeb, the Minister for Finance and Revenue who chaired a meeting with FBR and Karandaaz earlier in the day on the subject emphasized the importance of facilitation of business and people-centric approach in the design of these digital solutions.

He stated that the initiative holds a lot of potential which can only be realized through the use of best human capital leading the assessment and design.

Experienced international consultants who have implemented tax digitalization solutions in similar contexts should be engaged for this activity.

Waqas ul Hasan, CEO Karandaaz Pakistan stated that the initiative is in line with Karandaaz Pakistan’s sponsor Bill and Melinda Gates Foundation's Digital Public Infrastructure workstream and will help in building a robust ecosystem for Pakistan Digital Stack.

"The transformation when complete will put the taxpayer’s natural systems at the center and the tax administration more resilient and agile. The whole nation will benefit from the dividends of this digital transformation," he added.

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