FBR moves to digitalise tax administration

ISLAMABAD: The FBR and the Karandaaz Pakistan on Friday entered into an agreement for converting the tax collection machinery into a digital tax administration.

The Karandaaz will generate desired resources with the help of international partners to transform the FBR into a digital organisation whereby human interactions will be minimised and data will be utilised to expand the narrowed tax base.

According to an FBR announcement made here on Friday, stating that in line with the direction of the prime minister to transform the Federal Board of Revenue (FBR) into a digital tax administration, the FBR has entered into an agreement with the Karandaaz Pakistan for the digitalisation of tax system. The FBR has put considerable focus on automation of its processes and digitalising of the economy. These initiatives reduce the cost of compliance of taxpayers, document the economy, expand the tax base and lead the FBR on a sustainable path to revenue growth.

The FBR will be collaborating with the Karandaaz for developing a comprehensive digital strategy to realise the digital transformation of FBR, its digitalisation initiatives and their implementation. Under this agreement, the Karandaaz Pakistan, an impact investment platform that drives sustainable economic growth and strengthens financial and social protection systems for inclusion will assist the FBR in assessment of business needs, existing IT infrastructure and systems and business processes to establish the context and scope for digitalising the tax system of Pakistan using service-oriented and tax payer-centric use cases.

At the signing ceremony, Malik Amjed Zubair Tiwana, chairman FBR, stated the FBR had put considerable focus on automation of its processes and digitalising the economy including the supply chain digitalisation. Multiple endeavours have been undertaken to address the challenge of the undocumented economy and expanding the tax base. The FBR will now be collaborating with the Karandaaz for realising the digital transformation of FBR, its digitalisation initiatives and their implementation.

Muhammad Aurangzeb, minister for Finance and Revenue, who chaired a meeting with the FBR and the Karandaaz earlier in the day on the subject, emphasised the importance of facilitation of business and people-centric approach in the design of these digital solutions. He stated that the initiative held a lot of potential which could only be realised through the use of best human capital leading the assessment and design. Experienced international consultants that have implemented tax digitalisation solutions in similar contexts should be engaged for this activity.”

Waqasul Hasan, CEO Karandaaz Pakistan, said the initiative was in line with the Karandaaz Pakistan’s Sponsor Bill and the Melinda Gates Foundation’s digital public infrastructure work stream and will help in building a robust ecosystem for the Pakistan Digital Stack. The transformation when complete will put the taxpayer’s natural systems at the centre and the tax administration more resilient and agile. The whole nation will benefit from the dividends of this digital transformation.

The agreement was signed on March 15, 2024. On behalf of the FBR, Ardsher Salim Tariq, member (Reforms and Modernisation) and Sharjeel Murtaza, director Digital Services, Karandaaz Pakistan, signed it.