Rs800bn fraud cases in tax refunds detected in four months: PM

ISLAMABAD: Prime Minister Shehbaz Sharif has noted that digitisation process of Federal Board of Revenue (FBR) has started showing positive results as Rs800 billion fraud cases in tax refund cases have been detected in the last four months.

The prime minister chaired a four-hour-long meeting at the FBR head-office on Thursday with regard to digitisation of FBR and reforms in the board. It was Shehbaz’s second visit to the FBR headquarters during this month. The meeting was briefed on reforms process in Customs and Inland Revenue system and progress made in digitisation of the FBR in the last eight weeks.

The meeting was informed that with the use of latest technology, the FBR has identified 4.9 million new individuals who were in a position to pay tax. The prime minister directed the FBR chairman to bring all these 4.9 million individuals into the tax net on priority basis so that no additional burden is placed on the poor.

While emphasizing that reforms in the FBR were must for an increase in revenue collection, the premier directed for complete digitisation of the Fraud Detection and Investigation Department of the board. He also maintained that there should be no delay in making sales tax refunds and at the same time, he directed to chalk out an immediate strategy for return of illegal tax refunds made in the past.

He, however, was not happy with the unnecessary delay in completion of various FBR plans. Observing that 83,579 tax-related cases amounting to Rs3.2 trillion were pending in different courts and tribunals, he directed for increasing the number of appellate tribunals to 100 for expeditious disposal of cases. He also directed to increase the number of appellate tribunals to dispose of Customs cases.

The FBR officials informed the prime minister that the board during the tenure of the incumbent government had taken a number of steps for early disposal of tax cases. It was informed that 63 cases of tax to the tune of Rs44 billion have been disposed of in the last four months. Shehbaz also ordered to create a dashboard in order to monitor the performance of appellate tribunals.

The meeting was informed that since April 01, 2024, a total of 150,000 retailers have been registered through the FBR Tajir Dost Mobile Application. The prime minister directed the FBR officials to make the same system more effective through consultations with retailers. He also noted that there was a need to chalk out a strategy to bring all projects regarding reforms under a centralised system. He emphasized to acquire the services of best manpower and latest technology for digitisation of the FBR.

He also assured that there would be no delay in availability of funds for upgradation of Customs system and at the same time asked the FBR officials to present a plan and software design in this connection. He also sought proposals for reforms in the Pakistan Revenue Automation Authority.

The meeting was also informed that implementation of the Integrated Transit Trade Management System (ITTMS) would start from October this year. Under the system, one window facilities of international standards would be available for trade at the Pak-Afghan border at Chaman.

The work on Customs Automated Entry Exit System (AEES) has been started and the same system equipped with latest technology would be linked with web-based Customs and Pakistan Single Window system. Initially, the AEES would be installed at all the ports of Karachi besides Karachi, Peshawar and Multan International airports.

The meeting was further informed that Single Sales Tax Return System was being introduced and to start with, it has been implemented in the telecom sector. Through this system, the FBR would be linked with all the revenue authorities. The prime minister on the occasion directed to implement the Single Sales Tax System for every taxpayer from October this year. He also said that Customs AEES should also be installed at the Gwadar Port.

He was apprised that the FBR digitisation was being carried under the supervision of McKinsey, who is a consultant of an international repute.

Meanwhile, the prime minister accorded approval to establish the Generation Unlimited (GenU) secretariat. To make the youth programme successful and more effective, this secretariat will be established in the Prime Minister’s Youth Programme office. After the approval, the Cabinet Division has issued a notification.

A total of 23 tasks have been assigned to the GenU Secretariat. The secretariat would be responsible for coordinating with the government, the United Nations, private sector and civil society. It would provide support to develop long-term roadmaps, continuous feedback for improvement of investment agenda model, liaise for partnerships at all levels, monitor the fundraising activities and report to the technical steering committee. This notification has been sent to all ministries and divisions.

The prime minister also established the Generation Unlimited Strategic Advisory Council. The Patron-in-Chief of the advisory council would be the prime minister himself. The council would consist of 41 members. The advisory council also includes 17 federal and provincial ministers, including Economic Affairs, Education, Planning and Development, Overseas Pakistanis. Information Technology, Commerce, Industry and Production, National Heritage, Inter-Provincial Coordination and Climate Change. Members from the United Nations, Chamber of Commerce, and private sector, including Hashoo Group’s Sadruddin Hashwani, have also been made part of the council.

The prime minister has also approved the formation of Technical Steering Committee which would be headed by the Prime Minister Youth Programme Chairman Rana Mashhood.

The Technical Steering Committee will have 25 members. The committee includes representatives of ministries and the United Nations. The Generation Unlimited programme works to empower young people between the ages of 10 and 24 around the world. It links secondary education and skills development to employment and entrepreneurship.Meanwhile, the prime minister extended good wishes to United States President Joe Biden for his “swift and complete” recovery after he tested positive for Covid-19. “Wishing President Biden swift and complete recovery from Covid. Good wishes,” the prime minister wrote on his X timeline.