ISLAMABAD: The Federal Board of Revenue (FBR) has entered into an agreement with Karandaaz Pakistan for the digitalisation of the tax system in line with the reforms of tax administration.

The memorandum of understanding (MoU) was signed soon after Finance Minister Muhammad Aurangzeb met the FBR and Karandaaz officials on Friday. The meeting reviewed various options and emphasised the importance of facilitation of business and people-centric approaches in the design of these digital solutions.

Mr Aurangzeb stated that the initiative holds a lot of potential which can only be realised through the use of best human capital leading the assessment and design. Experienced international consultants who have implemented tax digitalisation solutions in similar contexts should be engaged in this activity, he added.

Under the agreement, Karandaaz Pakistan will assist FBR in the assessment of the business needs, existing IT infrastructure and systems, and business processes to establish the context and scope for digitalising the tax system using service-oriented and taxpayer-centric use cases.

FBR Member Reforms and Modernisation Ards­her Salim Tariq and Karan­daaz Pakistan Dir­ector Digital Services Sharjeel Murtaza signed the MoU on behalf of their respective organisations.

At the signing ceremony, FBR Zubair Tiwana said the board has put considerable focus towards automation of its processes and digitalising the economy, including the supply chain. “Multiple endeavours have been undertaken to address the challenge of the undocumented economy and expanding the tax base,” he added.

Karandaaz Pakistan CEO Waqas ul Hasan said the transformation upon completion will put the taxpayers’ natural systems at the centre and the tax administration more resilient and agile, adding that the whole nation will benefit from the dividends of this digital transformation.

Published in Dawn, March 16th, 2024