The Federal Board of Revenue (FBR) has launched simplified digital tax returns for salaried individuals as part of its broader tax reforms aimed at expanding the tax base.
The FBR shared the development during a meeting chaired by Prime Minister Shehbaz Sharif on Monday to review progress on the digitization of the FBR, including the implementation of an Artificial Intelligence-based assessment system and other structural reforms.
During its briefing, the FBR said salaried taxpayers would benefit the most from the new digital forms, which it said would also be available in Urdu by July 30. Appreciating the simplified forms, the prime minister said expanding the tax base and reducing the tax burden on the poor are among his government’s top priorities. He also directed the formation of a helpline to assist with the process of filing tax returns, adding digital invoicing should also be available in Urdu. “In tax reforms, the focus should remain on the convenience of the common man,” he said.
Sharif said third-party validation should be ensured for all FBR reforms to maintain transparency. He said tax returns had been made extremely easy by making them digital, concise, and linked with a centralized database for the public’s convenience. He directed the launch of a public awareness campaign to inform people about the ease in filing their returns. He also praised Finance Minister Muhammad Aurangzeb, his economic team, and the FBR chairman, saying positive results of tax reforms are the outcome of their tireless efforts.
“For the first time in the country’s history, the implementation of an A.I.-based tax assessment system is a big success, and the FBR’s initiatives are commendable,” he said, adding small and medium-sized businesses should be given special support in joining the digital invoicing system.
The meeting was further informed bidding for the FBR command and control unit would be completed soon, and the system would be fully functional by September. On the A.I.-based assessment system, it said traders could submit advance goods declarations before the arrival of ships. This would allow them to secure full exemption on upfront duties and taxes and allow containers to be delivered directly from the port to factories.
On digital invoicing, the meeting was told that all businesses, both large and small, would be required to issue receipts at the time of sale through the FBR’s online system. Around 20,000 businesses are expected to join this system in the coming months. In just one month, 8,000 invoices amounting to Rs. 11.6 billion were issued through this system. The system includes a taxpayer portal and a monitoring dashboard.
The premier asked the FBR to expedite the release of income tax refunds for salaried individuals of those amounting to less than Rs. 50,000. These refunds are to be issued within one month of return submission. The total disbursement under this directive is estimated at Rs. 10 billion.