National Targeting System unveiled to combat sales tax evasion

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday issued stern directives to overhaul the Federal Board of Revenue (FBR), condemning what he described as “70 years of mismanagement” and demanding a swift transition to a digitised, automated tax system to recover billions in lost revenue.

Chairing a high-stakes meeting, the prime minister ordered the FBR to abandon outdated methods, integrate artificial intelligence, and install tracking devices on goods – or “step aside.”

“The old ways are over,” a visibly angered Sharif declared, stressing the immediate and effective implementation of FBR reforms and a rapid rollout of automation and digitisation.

Tax evasion: PM Shehbaz orders action against individuals, sectors

He assured that honest taxpayers would receive full support. However, he warned, “There will be no concessions for tax evaders – only strict legal action.”

During the meeting, a “National Targeting System” was unveiled to combat sales tax evasion. This system will use e-tags and digital tracking for trucks transporting goods, supported by an e-Bilty system integrated into the FBR’s network.

Officials informed the meeting that efforts are under way to install digital monitoring systems at major highways and city entry points. These measures aim to curb smuggling and also reduce travel time for commuters.

Additionally, a customs targeting system will soon be introduced at ports and airports to automate the tracking of imports and exports. This system will leverage artificial intelligence and link with both domestic and international databases to fight smuggling and tax evasion.

The FBR has also begun training its staff on the new technologies, with a phased rollout starting through a pilot project in a major city.

According to the briefing, sectors such as cement, hatcheries, poultry feed, tobacco, and beverages will undergo stricter sales tax monitoring. Tracking mechanisms already in use in the sugar industry will be expanded to the tobacco, beverage, steel, and cement sectors.

The prime minister directed that all these measures be implemented promptly, effectively, and in a sustainable manner.

Copyright Business Recorder, 2025