ISLAMABAD: The Federal Board of Revenue plans to introduce digital tracking of freight vehicles to prevent sales tax evasion and curb smuggling.
A high-level meeting chaired by Prime Minister Shehbaz Sharif on Tuesday was briefed on the digital monitoring system, which will be installed at major highways across the country.
An official announcement said FBR Chairman Rashid Mahmood Langrial briefed the meeting on the project. He said the system freight vehicles will be fitted with e-tags and digital devices for the monitoring of goods.
The system will enable the digitisation of the economy and significantly increase tax revenue. It will be implemented in two phases. In the first phase, it will be launched in one city and later implemented across the country.
Production in tobacco, steel, cement industries being monitored
The meeting was informed that a system is being introduced for digital and automated monitoring of imports and exports at ports and airports.
This system will be linked to local and international databases and tax evasion and smuggling will be prevented by using artificial intelligence.
The meeting was also informed that FBR officials and other institutions have been deployed to monitor the production of tobacco, beverages, steel and cement, similar to the monitoring system implemented in the sugar industry. The meeting was briefed about the monitoring of sales tax in cement, hatcheries, poultry feed, tobacco and beverages.
The PM directed the officials to accelerate the implementation of tax reform measures. He said taxpaying individuals and businesses will be facilitated, but no concession will be given to tax evaders, who will face strict legal action.
The FBR has missed its collection target by nearly Rs831 billion in the first 10 months of the current fiscal year, mainly due to a decline in import volume and lower-than-expected inflation, which hit sales tax collections. The tax body collected Rs9.3 trillion in July-April FY25 against the budgetary target of Rs10.13tr.
Published in Dawn, May 21st, 2025
