Extensive reforms, structural changes in FBR: ‘Concepts of tax evasion, non-filers to be completely eliminated’

FAISALABAD: “Follow-ing extensive reforms and structural changes in the Federal Board of Revenue (FBR), the concepts of tax evasion and non-filers will be completely eliminated. The Tax Education and Facilitation Wing is playing a key role in achieving this objective. ” This was stated by Secretary Tax Education, Muhammad Muti-ur-Rehman Mumtaz, while addressing an awareness seminar on promoting tax culture at the Faisalabad Chamber of Commerce and Industry. He explained that the reform process within the FBR began two years ago, with consultations held with all relevant stakeholders to formulate effective policies. During this period, key issues were identified and practical solutions were proposed. He further noted that after accountability of employees, discretionary powers have been eliminated through digitalization. High-level digital systems have also been introduced to curb tax evasion. Monitoring of sugar mills alone resulted in an increase of Rs103 billion in sales tax revenue within just two months. Similar improvements have been observed in the textile, steel, beverage, and cement sectors. He emphasized that this increase has not faced objections, as data is now recorded and calculated through automated systems without human interference. He stated that 1. 7 million new taxpayers have been added to the tax net. Instead of taking direct action against non-filers, measures have been introduced to make foreign travel and property purchases so costly and difficult for them that they are increasingly opting to become filers voluntarily. He also mentioned that the tax policy division has now been separated, and every citizen’s national identity card number serves as their tax number. It includes records of all financial transactions, including fake accounts. Referring to the Point of Sale (POS) system, he said service providers collect taxes on behalf of the government, and immediate action is taken against those who fail to pay sales tax. In his closing remarks, President Farooq Yousaf Sheikh thanked the participants, especially the FBR delegation. He highlighted that the private sector and government institutions are like two wheels of the same vehicle, and their cooperation is essential for strengthening the economy on solid foundations. Addressing differences among various trade associations, he said All Faisalabad Trade Associations Economic Conference was held at Serena Hotel to resolve disputes, ensuring a unified voice at the chamber level. A joint document, prepared after consultations with all stakeholders connected to Faisalabad’s economy, has also been submitted to the Federal Minister for Finance. He said that he has visited more than fifty countries and there is absolutely no practice of not paying taxes in any country, so we should also ensure that we pay taxes voluntarily. He noted that while all chamber members are paying taxes, the system still requires further improvement. Abdul Rehman Sheikh, Second Secretary Facilitation at FBR, stated that a reward scheme has been introduced for individuals who identify tax evaders, which will help discourage tax evasion. He added that 3. 3 million potential taxpayers have been identified through electricity bills, with payment notices being issued to 100, 000 of them initially. The session concluded with a question-and-answer segment, attended by Executive Member Waheed Khaliq Ramay, Faisal Paracha, and Kamran Kisana. Later, Convener of the FBR Liaison Committee, Chaudhry Talat Mahmood, thanked the guests. At the end of the event, President Farooq Yousaf Sheikh presented a special lapel pin to Muti-ur-Rehman in connection with the chamber’s Golden Jubilee celebrations and exchanged shields. He also handed over budget proposal documents previously submitted to the FBR. Copyright Business Recorder, 2026

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