Islamabad: Prime Minister Shehbaz Sharif has welcomed the simplification of tax returns and their availability in Urdu and directed to establish a helpline aimed at assisting the filing process. Chairing a meeting to review progress on FBR reforms, he also instructed to launch a digital invoicing in Urdu, emphasizing that tax reforms should focus on facilitating the common citizen.
According to Radio Pakistan, the Prime Minister emphasized a third-party validation to ensure transparency in all FBR reforms. He noted that tax returns have been made digital, concise, and linked with a central database for public convenience, with the salaried class benefiting the most from the new simplified tax returns. He also advised running a public awareness campaign to encourage more people to file returns under the new system.
Shehbaz Sharif acknowledged the positive outcomes of tax reforms as the result of tireless efforts by the Finance Minister, economic team, FBR Chairman, and their staff. He highlighted that increasing the tax base and reducing the burden on the poor are top government priorities. The implementation of an AI-based tax assessment system is seen as a major success for the first time in the country's history, a commendable effort by FBR.
The Prime Minister directed special facilities for small and medium-sized businesses to join the digital invoicing system. The meeting was briefed on progress regarding digital invoicing, e-Bilty, simplified tax returns, the AI-based assessment system, the central Command and Control Center, and the cargo tracking system. It was shared that FBR's Command and Control Unit will become operational by September, enabling centralized data access and facilitating more efficient decision-making.
Participants were updated on the AI-driven assessment system, noting that traders will now be able to submit advance goods declarations prior to the arrival of ships, with full exemption from upfront duties and taxes. This measure is expected to increase advance declarations from three percent to over 95 percent, allowing containers to be transported directly from ships to factories.
Regarding the digital invoicing system, it was noted that all businesses will issue receipts through FBR's online platform at the point of sale and purchase. Approximately 20,000 businesses are expected to be integrated into the system in the coming months. Within just one month, 8,000 invoices worth 11.6 billion rupees were issued. The system includes a taxpayer portal and a monitoring dashboard. Integration with PRAL is free of cost, and traders' training is being actively facilitated. Once fully implemented, traders will no longer need to file separate sales tax returns, as transactions will be automatically recorded in the system.
Furthermore, the system will eliminate fake and flying invoices by aligning with internationally recognized 8-digit HS codes, simplifying performance evaluation of the sales tax system. Training sessions have been conducted to prepare business owners for the transition.
The meeting was informed that simplified digital tax returns for salaried individuals will be available from Tuesday, with access for other taxpayers beginning by the 30th of this month. Regarding the cargo tracking and e-Bilty system, real-time monitoring of goods movement and tax payments will be integrated, while AI-based assessments will enhance tax enforcement.
It was further told that Trkiye is supporting Pakistan in deploying this system to meet international standards.