ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to engage the services of world-renowned companies for third-party validation of ongoing initiatives and reforms within the tax system, as well as the introduction of simplified tax return forms for taxpayers.

The premier was reviewing the implementation status of the FBR reform measures. The premier was also infor­med about the recovery of Rs36.14 billion in two cases pending litigation for several years.

An official announcement from the Prime Minister’s Secretariat stated that the premier was briefed on the implementation of an easy digital tax return system for everyday users. The work is progressing rapidly on introducing the digital tax return system in Urdu and other local languages for the convenience of users, the premier was informed.

The current tax return form is very complicated, and Finance Minister Muhammad Aurangzeb has shown his displeasure on several occasions for not having a single-page form for salaried class.

FBR recovers Rs36bn in two cases after IHC ruling

The premier expressed satisfaction over the recent performance of the Faceless Customs Assessment System. The system has increased the overall revenue, and the customs clearance period has significantly been reduced.

The premier was also briefed on the progress of reforms in Pakistan Revenue Automation Ltd (PRAL).

Mr Sharif said the government was determined to achieve success in turning Pakistan into a stable global economy through sustainable institutional reforms.

He emphasised that all government institutions are working tirelessly to eliminate corruption and other shortcomings, such as a lack of transparency, within national institutions. He said recent positive economic indicators are clear proof of the right direction of the government’s policies.

Recovery in litigation

The FBR has recovered a tax amounting to Rs 36.14 billion in two cases that have been pending litigation for several years.

An official announcement from the finance ministry stated that the development came in response to the prime minister’s direction to the FBR to tighten its legal strategy and deliver results in court.

The Islamabad High Court (IHC) ruled in favour of the FBR in three key cases last week. These cases have been pending in different appellate courts for the last two and half years.

The most consequential was a tax recovery case against Bahria Town, in which the court upheld a decision allowing FBR to recover Rs26.446bn. The case had remained unresolved for over two years, pending across various appellate forums.

Also, two other corporate cases worth Rs9.7bn were also decided in favour of FBR by the IHC. One case had been pending in different courts for the last nine years, while the other had been pending litigation for three years.

It is worth mentioning that more than Rs3bn has already been recovered in these cases, while FBR is proactively pursuing recovery of the remaining amount, reinforcing its commitment to ensuring compliance and accountability.

Hundreds of billion rupees in revenue have been stuck in litigation for years, posing challenges to national revenue collection. These successes are a direct result of judicial.

Published in Dawn, June 3rd, 2025