IB, FBR recover Rs178 billion in joint operations against tax evasion

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif Monday commended the Federal Board of Revenue (FBR) and Intelligence Bureau (IB) for their efforts to increase tax collection and stressed that all the relevant authorities should work together to increase national tax revenue.

The prime minister observed that stability in Pakistan’s economy was made possible due to the joint efforts of the team, stressing that everyone should collaborate for the country’s economic progress and the prosperity of the people.

The prime minister was presented with a report by the FBR and IB on operations against tax evasion and hoarding, PM Office Media Wing said in a press release.

According to the report, the joint efforts by the IB and FBR had resulted in the recovery of Rs178 billion.

These measures led to a Rs69 billion increase in tax revenue through company mergers and telecom sector dues, it was added.

The IB conducted 515 raids in the sectors of sugar, animal feed, beverages, edible oil, tobacco and cement. As a result of these operations, Rs10.5 billion in additional taxes were recovered by thwarting attempts at tax evasion, the report added.

To overcome hoarding and artificial price hike, the IB carried out over 13,000 operations in the sugar, fertilizer, and wheat sectors, seizing illegally hoarded goods worth more than Rs. 99 billion since April 2022, the report further said.

Meanwhile, the FBR, under the direction of Prime Minister Muhammad Shehbaz Sharif, has for the first time in Pakistan’s history introduced the Artificial Intelligence based Custom Clearance and Risk Management System (RMS).

During a meeting chaired by the prime minister held here to review the ongoing reforms measures by the FBR, it was informed that under this new system, estimation of cost and nature of goods during import and export will be conducted by Artificial Intelligence and BOTs.

The new risk management system, based on modern technology, will continuously improve through automation using machine learning, along with the movement of goods, the meeting was told.

“During the initial testing of the new system, over 92% improved performance was observed.”

The briefing showed that in initial testing, not only was 83% more Goods Declarations (GD) determined for tax collection, but goods clearance through the green channel also increased two and a half times.

It was informed in the meeting that the new risk management system will bring transparency to the system, minimize human intervention, and provide ease to businessmen.