FBR reforms, again?

Prime Minister Shehbaz Sharif has warned against opposition to changes at the Federal Board of Revenue (FBR), following a strike call by revenue officers and disciplinary measures against some officials. Dawn’s analysis examines why repeated efforts to reform tax administration have not resolved weaknesses in compliance, audits and enforcement. It notes that World Bank-backed projects approved since 2004 had funding of $572.9m in total, although approvals do not equal money actually spent.

The article argues that digital tools alone will not deliver stronger tax collection without reliable records of economic activity, capable audits and accountability for enforcement. FBR figures show withholding taxes made up 58.2pc of gross direct tax collection in FY25, while collection on demand contributed 4.6pc; the sales tax gap was reported at over Rs3 trillion. The latest plan includes faceless customs assessment and a National Faceless Centre for Inland Revenue, with expansion across the country planned by June 2027. Its success, the analysis says, should be judged by actual recoveries and better compliance, rather than the number of cases flagged or returns filed.