The Prime Minister has taken a significant step towards modernizing Pakistan’s tax system by constituting a 10-member Task Force dedicated to the comprehensive digitalization of the Federal Board of Revenue (FBR). This initiative, led by State Minister for Finance and Revenue Ali Pervaiz Malik, aims to overhaul the current tax infrastructure, making it more efficient and transparent.
According to a letter from the PM office to the Federal Board of Revenue, the Task Force has been formed to develop and implement a comprehensive digitalization strategy for the FBR. The State Minister for Finance & Revenue, Ali Pervaiz Malik, will serve as the chairman, with Major General Syed Ali Raza, DG C4I, co-chairing the committee.
The Task Force includes a diverse group of members from both the public and private sectors:
Ghazi Akhtar, Lotte Akhtar Beverages Ltd. Ziad Bashir, Member BoD Gul Ahmed. Amir Malik, former CEO of PRAL. Fareed Zafar, LUMS. Asif Peer, Systems Ltd. Tania Aidrus. Waqas ul Hasan, Karandaz. Gohar Marwat, Project Officer, NADRA.
This diverse composition ensures a wide range of expertise and perspectives, crucial for the successful digital transformation of the FBR.
The Task Force has the authority to co-opt any additional members from the public or private sectors if deemed necessary. This flexibility allows the committee to bring in specialized knowledge and skills as needed to address specific challenges and opportunities in the digitalization process.
The Terms of Reference (ToR) for the Task Force outline several key objectives and actions:
Develop policy interventions necessary for the digitalization of the FBR, focusing on the implementation of data automation and software solutions. Achieve vertical data integration with Provincial Revenue Authorities and horizontal integration across various Ministries and Government departments. Implement risk-based auditing using CNIC as the primary identifier to broaden the tax base. Automate the supply chain, including wholesalers, distributors, and middlemen, to improve efficiency and transparency. Develop an integrated and automated Track & Trace System to monitor and manage tax-related activities. Restructure PRAL (Pakistan Revenue Automation Limited) as an independent IT-driven bureau to generate planning data and statistics. Create a trade data sharing interface with trading partners for effective valuation and appraisal.
The Task Force is expected to submit its recommendations and implementation plan to the Prime Minister within one month. This rapid timeline underscores the urgency and importance of the digitalization project. The FBR will be responsible for notifying the formation of the Task Force and providing the necessary secretarial support to facilitate its operations.
Digitalizing the FBR is a crucial step towards enhancing Pakistan’s tax collection efficiency, transparency, and overall economic stability. By integrating data, automating processes, and implementing advanced auditing techniques, the Task Force aims to create a robust and modern tax infrastructure. This will not only help in broadening the tax base but also in reducing tax evasion and increasing revenue collection.
