Islamabad (Web Desk): Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to devise a comprehensive, science-based framework for assessing the tax potential of various sectors in an effort to boost revenue collection and strengthen the country's tax system.
The directive was issued during a weekly review meeting on FBR reforms held in Islamabad, where the prime minister assessed progress on revenue growth initiatives and institutional restructuring.
PM Shehbaz instructed the FBR to work with the power sector to identify individuals and businesses engaged in undocumented economic activities and tax evasion, emphasizing that legal action should be taken against those found violating tax laws.
He also directed the FBR to make its digital production monitoring system fully operational by December in the textile, beverages, steel, poultry, edible oil and ghee, and tyre industries.
The premier also directed the authorities to implement the production tracking system across the entire manufacturing sector before the end of the year.
Commending the FBR chairman and his team, the prime minister said that, for the first time in Pakistan's history, production figures from the sugar industry are matching FBR records, describing it as evidence of the tracking system's effective performance.
To improve engagement with the business community, PM Shehbaz instructed the FBR chairman and senior officials to visit Karachi during the first week of every month to listen to traders' concerns and ensure timely resolution of their issues.
He also ordered an immediate third-party audit and verification of customs bonded warehouses to detect and address any irregularities.
The meeting was informed that the digital tracking system is already fully functional in the sugar, cement, tobacco, tiles, and fertilizer sectors. Its rollout in five additional industries, carrying an estimated tax potential of more than Rs700 billion, is nearing completion.
Officials further briefed the meeting that work is also underway to introduce the system in nine more production sectors with an estimated tax potential of Rs560 billion.
The participants were informed that 957 independent auditors have been appointed to improve transparency, while recruitment is in progress for 280 goods evaluators.
The meeting was also told that the customs faceless system has significantly reduced cargo clearance time while enhancing revenue collection.
The meeting was further informed that the Alternative Dispute Resolution Committees (ADRCs) settled 152 of the 377 tax cases within 90 days, leading to the recovery of Rs54 billion.