Tax reforms must be fully implemented within set timeframe: PM

Prime Minister Shehbaz Sharif has instructed authorities to finish tax reform measures fully within a set timeframe, Business Recorder reported. The directive came at a weekly review of Federal Board of Revenue (FBR) reforms chaired by the premier in Islamabad, according to the Prime Minister's Office. The meeting received a detailed update on the restructuring of Pakistan Revenue Automation Limited (PRAL), digitalisation and steps to curb smuggling.

Work on IRIS 3.0, a new tax operating model and a central data hub is moving forward in stages, and international consultants have been brought in to design the new system. PRAL also named fresh senior heads for areas such as technology, data security, operations and taxation, the press release added. Work is also moving quickly on a plan to raise the tax system's effectiveness under IRIS 3.0, test an auto tax concept, and apply artificial intelligence and machine learning to improve collections.

The premier asked that independent third-party audits be carried out on the reforms. He also ordered tougher action against tax evasion, smuggling and illegal businesses, with the goal of boosting revenue collection and eliminating smuggling entirely.