Work under way on FBR reforms, cashless economy: Aurangzeb

Finance Minister Muhammad Aurangzeb said on Saturday the government was working to strengthen the country’s financial system through reforms in the tax system and increase the efficiency of the Federal Board of Revenue (FBR).

“The government aims to create convenience for the public, restore the confidence of taxpayers, and establish a transparent system that can become the basis for Pakistan’s sustainable economic development,” the finance minister said while addressing the closing and certificate distribution ceremony of the FBR’s Postgraduate Diploma Programme at Lahore University of Management Sciences (LUMS) on Saturday, according to a statement from the Finance Division.

The minister said he had been receiving full support from Prime Minister Shehbaz Sharif at every stage and the government was working in a coordinated manner to improve tax policy and tax administration.

He said a new model was being introduced in the FBR, which would significantly improve the transparency and efficiency of the institution.

“Prime minister is focusing especially on FBR reforms and promotion of cashless economy so that the economy can be documented, the tax net can be expanded, and financial transparency can be promoted.”

He argued that no country could develop with tax evasion, therefore, the government was taking steps to eliminate tax evasion. At the beginning of the reform process, he said, the prime minister had directed that the reform process should start from home first and the process of reform should be initiated from the sugar sector because the prime minister’s family business was also associated with the sector.

After that, monitoring and reform measures were also taken in the cement sector, he added.

Aurangzeb said the government had detected major cases of sales tax evasion, which had resulted in increased tax collections and benefited the national exchequer.

“The government is working with various national institutions to develop databases on modern lines so that information exchange can be made effective, tax evasion can be prevented and policy making can be done in a better way,” he explained. “Modern digital systems and integrated data are the basis of effective tax administration.”

He stressed that FBR officers would have to take full advantage of modern technology, especially artificial intelligence. “Today is the era of artificial intelligence (AI)”.

Addressing the ceremony, FBR chairman Rashid Langrial said enhancing the professional skills of FBR officers and training them in line with modern requirements was essential for establishing an effective tax system.

Under the objective, he said, training programmes were being organised so that the performance of the institution could be further improved.