Government accelerates tax reforms as AI-powered faceless revenue system prepares for first-phase launch in October
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to strengthen enforcement against smuggling, tax evasion and illegal businesses while accelerating reforms aimed at achieving the government’s revenue targets.
Chairing a review meeting on FBR reforms in Islamabad, Shehbaz welcomed growing business confidence in the tax reform programme and ordered authorities to speed up implementation.
Furthermore, he directed the FBR chairman and senior officers to spend two days every month in Lahore, alongside their existing monthly visits to Karachi, to engage directly with businesses and address taxation concerns.
Faceless Tax System Set for October Launch
Meanwhile, the prime minister ordered timely implementation of the proposed Faceless Inland Revenue System, with authorities targeting complete rollout by 2027.
Officials informed the meeting that the first phase would become operational on October 1, 2026. The artificial intelligence and advanced technology-based platform forms a central component of FBR’s digitisation programme.
The system will establish a National Faceless Audit Wing to audit tax returns and a Faceless Assessment Unit to conduct assessments. Moreover, authorities will randomly allocate tax cases without geographical jurisdiction restrictions.
Shehbaz also instructed the FBR to appoint officers with strong reputations and integrity to sensitive positions.
Crackdown Targets Illegal Cigarette Factories
Additionally, the prime minister praised intelligence-based operations against illegal cigarette manufacturing facilities in Chakwal and Swabi.
Officials told the meeting that authorities sealed the Chakwal factory and confiscated illegal cigarettes and manufacturing machinery.
The FBR chairman also briefed Shehbaz about meetings with seven major trade organisations during his monthly Karachi visit, saying officials promptly addressed business concerns.
Furthermore, the FBR is preparing time-bound procedures to accelerate tax refunds for exporters.
Shehbaz directed officials to maintain strong enforcement while ensuring reforms improve transparency, taxpayer facilitation and revenue collection nationwide.
