Prime Minister Shehbaz Sharif has directed the implementation of a comprehensive National Targeting System to tackle sales tax evasion, smuggling, and under-invoicing across Pakistan. The announcement came during a high-level review meeting chaired by the Prime Minister, focusing on Federal Board of Revenue (FBR) reforms and enforcement initiatives.
According to a statement issued by the Prime Minister’s Office (PMO), the new system will use e-tags and digital tracking devices to monitor the movement of goods through transport vehicles. This will allow authorities to track goods in real time and reduce tax fraud in supply chains.
Key Highlights of the National Targeting System
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e-Bilty Integration:
A new e-Bilty system will be launched and fully integrated with the FBR’s digital infrastructure. It will digitize consignment records and monitor the origin and movement of goods, helping reduce tax evasion and smuggling. -
Digital Checkpoints Nationwide:
Digital monitoring systems will be installed on all major highways and entry points of major cities, enabling end-to-end tracking of commercial transportation. -
Customs Targeting System at Ports & Airports:
To enhance oversight on imports and exports, a Customs Targeting System will also be introduced. This will automate customs checks using artificial intelligence and integrate with both domestic and international databases.
The overarching goal is to digitize the economy, prevent illegal trade, and boost national revenue without increasing the burden on honest taxpayers.
Strong Message Against Tax Evasion
During the meeting, PM Shehbaz Sharif stressed the urgency of reforming a tax system plagued by “70 years of mismanagement.” He reaffirmed that the government would fully support honest taxpayers and legitimate businesses, but warned of strict legal action against tax evaders and those involved in under-invoicing or smuggling.
“We will provide maximum facilitation to compliant businesses, but those who cheat the system will face the full force of the law,” the Prime Minister said.
This reform is part of the government’s broader strategy to expand the tax base, improve fiscal transparency, and reduce reliance on external borrowing.
