Pakistan Prime Minister Shehbaz Sharif on Thursday said the use of modern technology was essential to bring improvement in the country’s tax and revenue system.
He remarks came as he chaired a meeting on the progress of reforms in the Federal Board of Revenue (FBR) on Thursday, according to a statement from the Prime Minister’s Office (PMO).
During the meeting, PM Shehbaz directed the FBR to make full use of technology to improve revenue collection.
PM Shehbaz emphasised the need to make the system for preventing smuggling in the country more effective.
He also sought a roadmap for the reconstruction of the Pakistan Revenue Automation Limited (PRAL), the PMO said.
Last month, the Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the reconstitution of the Board of Directors (BoD) of the PRAL.
“The meeting considered the recommendation of five majority independent directors and four ex-officio members by the Board Nominations Committee as per Section (1) of Section 10 of the Enterprises (Governance and Operations) Act, 2023,” read the statement from Finance Division then.
It is pertinent to mention that PRAL, established in 1994, is responsible for providing technology-driven solutions to the FBR, playing a vital role in automating the country’s tax collection system.
In the meeting on Thursday, the prime minister said a taxpayer-friendly environment should be provided within FBR, as he directed the relevant officials to ensure timely completion of reforms in the board.
FBR faces shortfall in first quarter of FY25
Despite taxation measures of Rs1,800 billion in the budget (2024-25), the FBR suffered a massive shortfall of over and above Rs87 billion during the first quarter (July-September) 2024-25.
The FBR collected Rs2,452 billion against the assigned target of Rs2,539 billion set for the first quarter of current fiscal year.
However, the board achieved the monthly target of Rs985 billion set for September, 2024 by collecting net revenue of Rs996 billion during the month.
According to the list of retailers compiled by the FBR till October 17, 2024, the FBR has integrated 160 big retailers with the Point of Sales (POS) system during October, taking the total number of registered Tier-I retailers to 9,290.
The board also extended the deadline for filing the income tax returns further till October 31, 2024.
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