PM directs FBR to roll out digital production monitoring in five more sectors by December

Prime Minister Shehbaz Sharif directed the federal tax collecting authority on Wednesday that a system for digital monitoring of production in the textile, beverages, steel, poultry, edible oil and ghee, and tyres sectors should be made operational by December.

“A weekly review meeting on FBR reforms was held under the chairmanship of Prime Minister Muhammad Shehbaz Sharif, in which a detailed review of progress on increasing revenues and institutional reforms was presented,” the Prime Minister’s Office (PMO) said in a statement.

During the meeting, the PM directed that a comprehensive and scientific methodology be developed and presented for estimating tax potential in various sectors. In collaboration with the power sector, individuals and businesses involved in informal economic activities and tax evasion should be identified, and legal action taken against them.

“For the first time in Pakistan’s history, the alignment between data from the sugar production sector and the FBR is clear evidence that the tracking system installed by the FBR is operational and demonstrating improved performance,” he said.

“Individuals and businesses that comply with all regulations within the tax system and facilitate tax collection are a valuable asset to the country and nation and are worthy of appreciation.”

Moreover, the PM said that the government had provided as many facilities as possible to the export and domestic sectors concerning taxes and will continue to do so in the future.

He directed FBR Chairman and senior officers to be present in Karachi during the first week of every month so that the issues of the business community can be heard and resolved promptly.

Moreover, the premier was briefed by the FBR on the installation of the tracking system for the production sector, reforms implemented regarding the workforce in the FBR, and efforts to enhance operational efficiency.

The meeting was informed that the tracking system is fully operational in the sugar, cement, tobacco, tiles, and fertiliser sectors, while implementation in an additional 5 sectors, with a tax potential of more than Rs700 billion, is in its final stages.

“The meeting was further informed that work is underway in collaboration with the sectors to develop and implement the tracking system in 9 production sectors, which will enable the realisation of a tax potential of Rs560 billion.”

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The PM directed that the implementation of the tracking system for collecting indirect taxes in the production sector be ensured by the end of this year, added the statement

While briefing on reforms regarding the workforce, the meeting was informed that officers were being trained at the country’s prestigious universities at the time of their recruitment, ensuring adherence to principles of merit and good performance.

The training modules are aligned with international standards and the requirements of Pakistan’s tax system, it was informed.

The meeting was further informed that a system has been introduced in the FBR to recognise officers and officials with better performance and to penalise those with poor performance.

On appointments and transfers in the FBR, the PM said this should be made solely “based on merit”.