ISLAMABAD: Prime Minister Shehbaz Sharif has approved the development of a modern digital system in the Federal Board of Revenue (FBR) and directed officials to hire international experts for the task.
He gave the approval while chairing a meeting in Islamabad to review FBR reforms.
The prime minister stressed that the FBR must continue engaging with traders on tax compliance matters and warned that no harassment of the business community will be tolerated. “We must keep businesses running. We don’t want to shut down shops,” he said.
His directions come at a time when several trade bodies have called for a nationwide strike to protest the government’s new tax measures targeting retailers and efforts to document the economy.
According to a government official, Shehbaz Sharif clearly told senior FBR officials to avoid any coercive actions against traders. He advised using digital tools instead of physical raids to trace tax evasion.
“Use technology to detect evasion and then issue notices for tax recovery,” the prime minister said.
To detect underreporting, the FBR has placed tax officers at factories in 10 key sectors including sugar, tobacco, and ghee. These officials are monitoring real-time production under Section 40B of the Sales Tax Act, 1990. Intelligence Bureau and other agencies are also supporting these efforts to maintain transparency.
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Initial findings show that some sectors have been hiding actual production to avoid paying taxes.
PM Shehbaz highlighted the need for fair taxation across all parts of the economy. He expressed concern that only the manufacturing sector and salaried individuals are being taxed heavily, while others remain outside the net.
He directed that wealthy individuals, retailers, wholesalers, and other business sectors must also be brought into the tax system to ensure fairness and a wider tax base.
“The tax process should be fair and efficient. All sectors must contribute to reduce pressure on domestic taxation,” the prime minister added.
An FBR official said most issues with traders have already been resolved and the rest will be discussed in the final round of talks.
