ISLAMABAD: Prime Minister Shehbaz Sharif directed tax authorities on Tuesday to eliminate corruption in customs operations and remove unnecessary hurdles in using artificial intelligence (AI) and hi-tech equipment to ensure full enforcement of customs duties.

Chairing a meeting to discuss matters related to the Federal Board of Revenue (FBR) and Pakistan Customs, the premier also called for digitisation of the taxation system to prevent the evasion of billions of rupees.

He also instructed the authorities to conduct a third-party audit of a Web-based One-Customs (WeBOC) system and bring all such projects under one umbrella.

He stressed the need to eliminate the menace of under-invoicing to protect local industries.

Orders third-party audit of WeBOC system

He also sought details of revenue collection as a result of enforcement and also instructed establishing a regulatory framework for the operations of the shipping industry.

The prime minister was informed that the operations of the Pakistan Customs had been fully automated, and experts of international repute had been engaged to implement reforms that would feature modern AI-based systems.

While being informed of FBR’s digitisation, the meeting was informed that 4.5 million individuals not part of the tax net were identified. Consequent to the government’s measures, over 300,000 more individuals have filed their tax returns within a few weeks.

Shehbaz directed to increase revenue collection through better enforcement and establish a project management unit for reforms in the customs department.

Besides, the refunds of 4,000 companies were been halted the during last two weeks, following the detection of under-invoicing and forged sales tax refunds.

The PM vowed to introduce an international taxation system in the country and called for engaging well-reputed professionals and experts to formulate the tax policy.

Published in Dawn, July 12th, 2024