The Federal Board of Revenue (FBR) is implementing a comprehensive strategy to enhance tax revenue collection in Pakistan. This approach encompasses several key initiatives:
1. Digitalization and Technological Advancements
The FBR has established the Transformation Delivery Unit (TDU) to spearhead digital reforms aimed at improving efficiency in tax and customs procedures. This includes the introduction of a new digital invoicing system to streamline sales tax collection and reduce tax evasion.
2. Broadening the Tax Base
Efforts are underway to expand the tax base by targeting under-taxed sectors. This involves registering and collecting taxes from non-filing retailers and supply chain operators, as well as implementing policy reforms to improve tax collection efficiency.
3. Enforcement Measures
To meet revenue targets, the FBR has ramped up enforcement actions, including issuing notices to non-compliant taxpayers and enhancing audit procedures. These measures aim to ensure compliance and deter tax evasion.
4. Policy Reforms
The FBR is focusing on policy reforms that promote progressive taxation by introducing measures where the incidence of tax is higher on affluent classes. This includes simplifying tax laws, eliminating unnecessary exemptions, and reducing dependence on withholding taxes.
5. Revenue Targets and Projections
For the fiscal year 2024-25, the FBR has set an ambitious revenue collection target of Rs 12,913 billion, representing a significant increase from the previous year. However, as of March 2025, the FBR collected Rs 8,464 billion, falling short of the target by Rs 703 billion.
6. Addressing Complaints and Enhancing Taxpayer Trust
The FBR has faced a surge in complaints regarding highhandedness and procedural violations. To address these issues, the FBR is working to improve taxpayer services and establish effective dispute resolution mechanisms to build trust and encourage voluntary compliance.
Through these multifaceted strategies, the FBR aims to enhance revenue collection, broaden the tax base, and foster a culture of compliance, contributing to Pakistan’s economic stability and growth.
