Tax Filing System
ISLAMABAD: In a major move toward tax simplification and economic digitisation, the Federal Board of Revenue (FBR) has launched a new automated tax return filing system specifically designed for the salaried class. The initiative aims to streamline the tax process, reduce manual input, and improve taxpayer compliance through digital integration.
The newly introduced interactive return form includes an auto-fill feature that pulls in data from various official sources. This data includes asset ownership, registered purchases, tax deductions at source, and bank account balances.
Once the necessary fields are populated, the system generates a single, simplified tax return for submission. Initially available in English, the form will soon be offered in Urdu by the end of this month. Regional language versions in Sindhi and Pashto have also been launched, with Punjabi and Balochi versions to follow.
The new return system is divided into eight digital windows, each featuring a step-by-step input field designed to guide users through the filing process. For instance, entering an employer’s name in the first window will automatically populate tax deduction details. Withholding tax records linked to a filer’s Computerised National Identity Card (CNIC) will also appear automatically, minimizing errors and eliminating the need for extensive manual data entry.
Under the Income Tax Ordinance, all individual taxpayers are required to submit their returns by September 30.
Prime Minister Shehbaz Sharif, while chairing a high-level meeting on FBR reforms, emphasized the importance of simplifying the tax process for ordinary citizens. He directed the FBR to expedite the rollout of the Urdu version and ensure the refund of income taxes—up to Rs50,000—for salaried individuals within one month of filing. An estimated Rs10 billion will be disbursed under this directive.
Additionally, the Prime Minister ordered the establishment of a dedicated FBR helpline to assist users during the filing process. He highlighted that digitalisation of tax returns, combined with artificial intelligence-based tax assessments and centralised databases, is a transformative step toward a more efficient and transparent tax system.
The meeting also reviewed broader reforms, including digital invoicing, e-Bilty (electronic goods transport documentation), and the integration of a new cargo-tracking system. The FBR’s Command and Control Centre is expected to become fully operational by September, centralizing data access and improving decision-making.
Under the new digital invoicing regime, both small and large businesses will be required to issue receipts through FBR’s online portal at the point of sale. Over 20,000 businesses are projected to join the system in the coming months.
Integration with PRAL (Pakistan Revenue Automation Limited) will be offered free of cost, and training is being actively provided to traders. Once fully functional, the system will automate the recording of transactions, eliminating the need for separate sales tax returns.
In the realm of customs, a new AI-driven assessment mechanism will allow traders to submit advance declarations for goods, enabling direct container transfers from ports to factories without upfront duties. This innovation is expected to increase advance declarations from the current 3% to over 95%.
The Prime Minister reiterated the government’s commitment to a fully digital economy. He emphasized digitizing government payments and transactions to foster transparency and ease for citizens. Special facilities will be extended to small and medium enterprises (SMEs) to enable their inclusion in the digital system.
Further, PM Shehbaz Sharif instructed that all state-owned enterprises be brought under the digital framework and stressed the importance of appointing business experts to the board of Raast—the government’s instant payment system. A nationwide awareness campaign will soon be launched to promote digital payments.
It was also revealed that mobile app and digital banking users in Pakistan are expected to grow from 95 million to 120 million, with digital payment volume set to double from Rs7.5 billion to Rs15 billion. A Digital Payments Index will be introduced within a month, and formal remittance systems are being reinforced in coordination with provincial and regional governments.
These comprehensive reforms represent a significant step in Pakistan’s journey toward economic modernization and digital governance, with the salaried class positioned to benefit substantially from the ease and efficiency of the new system.
