PM okays plan to overhaul tax dispute system

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday approved a comprehensive action plan aimed at overhauling the country’s tax dispute system, following a presentation by a government task force that outlined six key reforms.

The plan, presented by Shad Muhammad Khan, chairman of the 10-member Prime Minister’s Task Force on Tax Litigation Framework, includes the establishment of case scrutiny committees, the creation of a Centralised Litigation Management System (CLMS), and the linking of performance reports of all officers – including commissioners – to the outcomes of tax cases.

The task force, formed in March 2026, was mandated to restructure the country’s tax dispute mechanism and expedite case resolution.

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During a high-level review meeting on Federal Board of Revenue (FBR) reforms, Shad Muhammad Khan detailed the proposals aimed at modernising the management of tax litigation and enhancing accountability across the tax administration.

Addressing the meeting, the Prime Minister commended the task force members for their “hard work and dedication” in preparing the report, stating that ongoing digitisation and reform initiatives at the FBR were already producing “better results.”

He directed that the action plan be implemented with clear timelines and directed officials to make the alternative dispute resolution (ADR) system more effective, noting that it would reduce the burden on courts and accelerate the resolution of tax disputes.

“This system will reduce the burden of cases on courts and expedite decisions on tax cases,” the PM said.

He also emphasised that the proposed CLMS should be established as soon as possible and that the FBR’s legal wing should be staffed with the “best personnel” to ensure merit-based recruitment. Officials briefing the meeting explained that the digital CLMS would be specially designed to organise and track tax dispute data, allowing for accurate reporting, timely follow-ups, and improved monitoring of case progress.

They added that decisions through the ADR forum had already recovered Rs2.4 billion for the national treasury so far this year.

The six-pronged reform strategy aims to streamline litigation, strengthen accountability, improve performance monitoring, and digitise case management to reduce delays in adjudication. Case scrutiny committees are expected to provide closer oversight of tax disputes, while linking officer performance to case outcomes is intended to foster greater responsibility and transparency.

The meeting was attended by Law and Justice Minister Azam Nazeer Tarar, Minister for Climate Change Musaddik Malik, Economic Affairs Minister Ahad Cheema, Finance Minister Muhammad Aurangzeb, Minister for Information Attaullah Tarar, Attorney General for Pakistan Mansoor Awan, Minister of State for Finance Bilal Azhar Kiani, and members of the task force.

Copyright Business Recorder, 2026