Pakistan PM Orders Accelerated Reforms in Tax Authority

Pakistan's Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue to speed up its reforms, the state broadcaster Radio Pakistan reported on Monday.

The directives were issued by the premier while chairing a meeting on FBR, where he urged the need for continuous improvement in its capacity to address the tax gap. He stressed the importance of technology, effective training, transparency, and accountability in this process.

The prime minister also directed the tax authority to speed up the implementation of a faceless system in tax collection areas. He directed FBR to take indiscriminate action against corrupt elements within the organization.

The meeting was informed of the progress and results of several initiatives, including technology, human resources and operational systems. 

The reforms have reduced the estimated tax gap from 6% to 5% of GDP over the past three years, the meeting was told.

The prime minister was briefed that the use of technology has curtailed the discretionary powers of FBR officers. Newly recruited officers were receiving training at the Lahore University of Management Sciences, while in-service training programs were also underway.

A peer-rating system has been introduced to assess officers' performance, and 957 auditors have been hired on merit-based contracts as third-party auditors to enhance the Federal Board of Revenue's audit capacity.

The tax authority is also undergoing extensive technology-driven restructuring, with the recruitment of specialised technical personnel and the introduction of a performance-linked incentive system.