Islamabad: The Federal Board of Revenue (FBR) will brief Prime Minister Shehbaz Sharif on the faceless tax system, digital reforms and measures to increase tax collections.
According to sources, the briefing will discuss the current status of implementation of the faceless system in the inland revenue sector and the plan to restructure the tax machinery. Officials also worked on Sunday to finalise the points to be presented to the Prime Minister.
The proposed reforms include the use of artificial intelligence for analysing tax returns, improving the digital system and measures related to the human resources of the tax administration.
According to the sources, the FBR will also present proposals to reduce the potential tax gap of more than one trillion rupees in 18 sectors. The tax gap refers to the difference between current collections and the potential tax revenue that can be collected.
The main objective of the faceless system is to limit direct contact between taxpayers and relevant officers and increase transparency in operations. However, effective monitoring, data accuracy and facilitation of taxpayers are also essential for the success of the system.
If digital reforms are implemented effectively, it is possible to improve tax collections and reduce administrative discretion. However, the results can only be assessed from practical implementation and future collection data.
