PM orders automated tax system in Capital

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday instructed authorities to begin a pilot project in Islamabad for an automated income tax system, as part of broader efforts to modernise the Federal Board of Revenue (FBR) and improve tax compliance.

Chairing a meeting on FBR reforms, the prime minister was briefed on a plan to digitise and automate tax administration using artificial intelligence, aimed at reducing human involvement and discretionary powers.

Officials said the proposed system would integrate data from property records, vehicle registrations, and bank accounts to detect undeclared income and assets, strengthening enforcement through improved data sharing between government institutions.

The meeting was informed that the pilot project would be launched in Islamabad before a potential nationwide rollout, while AI-based tools would further streamline tax processes under a “modern and faceless” tax regime.

The prime minister described the initiative as a key reform milestone, saying it would enhance transparency, improve revenue collection, and broaden the tax base, while officials also projected additional revenue from action against the illegal cigarette trade.