Prime Minister Shehbaz Sharif has said improving tax system to increase national revenue and reduce tax burden on the common man is among the government’s top priorities.
Chairing a meeting regarding FBR reforms in Islamabad, he said digitization of the FBR has helped in achieving targets.
He said improvement in tax system due to the reforms of the FBR is a welcome development. He however emphasized that steps should be taken within a specified period to create a system compatible with contemporary requirements.
Shehbaz Sharif said a comprehensive plan should be developed for the restructuring of FBR’s digital wing, with clear timelines for achieving the set objectives.
He said the reform process must ensure consultation with all stakeholders emphasizing that facilitation of businessmen, the trading community and taxpayers must be prioritized in the implementation of FBR reforms.
The Prime Minister directed to take more measures regarding enforcement to curb the informal economy.
The meeting was informed that due to FBR’s enforcement actions and other reforms, the tax-to-GDP ratio has witnessed a historic increase of 1.5 percent.
It was informed that the number of individuals filing tax returns has increased from 4.5 million to 7.2 million. In the retail sector, it was informed that an additional tax of 455 billion was collected in income tax as of 30th June this year, compared to 2024.
The meeting was informed that the FBR’s faceless customs clearance system not only boosted tax revenue but will also reduce clearance time from fifty two hours to just twelve hours within the next three months.
