Latest news with #PRAL
Express Tribune
6 days ago
- Business
- Express Tribune
PM orders third-party validation of reforms
Prime Minister Shehbaz Sharif on Monday directed for third-party validation of ongoing initiatives and reforms in the Federal Board of Revenue (FBR) by internationally renowned companies, stressing that the government was determined to lead the country toward a stable economy through institutional reforms. Chairing a review meeting of the FBR affairs, the prime minister noted that institutional reforms were progressing rapidly across all sectors and that all the government institutions were working tirelessly to eliminate corruption and addressing other deficiencies, such as a lack of transparency. "The recent positive economic indicators are clear proof of the correct government policies," the prime minister told the meeting, attended by Law Minister Azam Nazeer Tarar, Information Minister Attaullah Tarar, the FBR chairman, and senior officials from the relevant institutions. Expressing satisfaction over the recent performance of the faceless customs assessment system, the prime minister highlighted that reforms such as the faceless customs assessment system were yielding promising results in maintaining transparency. The prime minister received a briefing about the performance of the faceless customs assessment system and progress in the reforms in the Pakistan Revenue Automation Limited (PRAL). Officials said that a simplified digital tax return system for the general public would be implemented soon. The implementation of the faceless customs assessment system has led to an overall increase in revenue and a significant reduction in customs clearance time, while the reform process in the PRAL is progressing rapidly, the meeting was informed. The officials stated that efforts were under way to introduce the digital tax return system in Urdu and other local languages for the convenience of ordinary users. "God willing, we will succeed in our struggle to make Pakistan economically stable," Prime Minister Shehbaz said, after the briefing. (WITH INPUT FROM APP)
Business Recorder
31-05-2025
- Business
- Business Recorder
PTBA for extending e-integration deadline
ISLAMABAD: Following failure of the FBR to integrate sales taxpayers, Pakistan Tax Bar Association (PTBA) has asked the Federal Board of Revenue (FBR) to extend the deadline up to June 30, 2025 for corporate sales taxpayers to electronically integrate with the FBR's system. The deadline of integration has been expired on June 1, 2025 for the corporate sales taxpayers. According to a letter of the PTBA to FBR Chairman, Pakistan Tax Bar, fully support the government's documentation initiative aimed at enhancing transparency and documentation of the supply chain through implementation of electronically integrate their hardware and software with Boards computerized system (E-invoicing) through license integrator or PRAL under SRO 709(1)/2025 dated 22nd April, 2025. The corporate and individual tax filers have to integrate by May 1, 2025 and June 1, 2025 and subsequently deadline was extended for corporate and individual tax filers to June 1, 2025 and July 1, 2025 respectively. However, despite these timely efforts, it remains practically impossible for significant number of corporate entities to integrate with Board's computerized system through license integrator or PRAL within specified time and manner. It has received several representations from member bars across the country indicating that the deadline for corporate tax filers is going to be expired on June 1, 2025. In these current circumstances, it seems impossible to get the integrated process completed by the corporate tax filers on the due date. Therefore, in the interest of documentation and proper implementation for the integration of supply chain, the PTBA has recommended that the deadline for the corporate tax filers to integrate has to be extended till June 30, 2025. Copyright Business Recorder, 2025
Business Recorder
14-05-2025
- Business
- Business Recorder
Digital invoicing systems: ‘PRAL committed to rendering costfree services to taxpayers'
LAHORE: Pakistan Revenue Automation Limited (PRAL) is committed to render cost free services to all taxpayers for digital invoicing systems and its integration with FBR. This was announced by Abid Naeem General Manager PRAL while addressing APTMA members. He said that it is mandatory for all taxpayers to install and integrate Digital Invoicing System with FBR with effect from June 01, 2025 by corporate sector and by July 01 by non-corporate members. Earlier Asad Shafi Chairman APTMA North welcomed PRAL team and appreciated them for arranging awareness session on Digital Invoicing. He said that in terms of Rule 150Q of Sales Tax Rules, 2006 all taxpayers are required to electronically integrate their hardware and software used for generation and transmission of electronic invoices through licensed integrators. Asad said that under Rule 150XF PRAL has been notified as Licensed Integrator to provide free of cost integration services to taxpayers. He added that the initiative of PRAL to conduct awareness sessions all over the country will help for education, awareness and guidance of taxpayers. Asad hoped that the training on the new system would help tremendously to guide all taxpayers well before implementation of the system. Asad Shafi hoped that such seminars will shed light on how Digital Invoicing can transfer financial operations, streamline, emphasize and foster a more transparent and efficient system. Abid Naeem GM PRAL, emphasized the critical need for businesses to embrace technological innovations. He informed that PRAL as the licensed integrators provides end-to-end free of cost assistance with structured implementation and ongoing support. He said that PRAL offers direct integration and manages compliance with regulatory requirements, helping businesses to avoid penalties. He continued that direct integration relieves businesses from technicalities and enables them to handle compliance independently. Abid said that Pakistan's financial sector is undergoing a massive digital transformation. With the Federal Board of Revenue's SRO 69(I)/2025, businesses must adapt to new e-invoicing mandates to remain compliant to improve their transparency. He said that seminar, is aimed to simplify the transition process by highlighting practical steps and addressing any concerns that the market participants may have. He added that PRAL, remains committed to providing secure, efficient, and compliant digital solutions that empower organizations of all sizes. Abid said that PRAL has always championed digital innovation in Pakistan. It is enabling businesses to seamlessly integrate e-invoicing with existing ERP systems and workflows. He added such seminars are designed to address the common challenges and misconceptions around FBR-compliant invoicing, ultimately helping participants to realize the benefits of automation, enhanced visibility, and real-time data analytics. Copyright Business Recorder, 2025
Business Recorder
03-05-2025
- Business
- Business Recorder
Corporate taxpayers, cos: FBR extends e-invoice integration deadline
ISLAMABAD: The Federal Board of Revenue (FBR) has extended the deadline by one month for all sales tax corporate taxpayers/companies and non-corporate registered persons to electronically integrate their hardware/software with customs computerized system to generate and transmit electronic invoices. The FBR Friday Issued instructions to Chief Commissioners Inland Revenue, Large Taxpayers Offices (LTOs), Medium Taxpayers Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) on electronic integration of taxpayers. All categories covered: FBR extends new set of rules for e-invoicing In exercise of powers conferred under Section 74 of the Sales Tax Act, 1990, the FBR has extended the date of integration with the Board's computerized system through license integrator or PRAL as required under Rule 150Q of the Sales Tax Rules, 2006 as per following: Corporate registered persons (June 1, 2025 date of integration) and non-corporate registered persons (July 1, 2025 date of integration). Earlier, the FBR had given deadline of May 1, 2025 to the corporate taxpayers and non-corporate registered persons were given deadline of June 1, 2025 for integration purposes. Copyright Business Recorder, 2025
Express Tribune
27-02-2025
- Business
- Express Tribune
PRAL board starts amid violations
Listen to article The board of Pakistan Revenue Automation Limited (PRAL) – a key player in the government's Rs3.7 billion plan to modernise the information technology arm of the tax machinery – has started its work without first disclosing potential conflicts of interest or developing a code of conduct, a requirement under the law. The non-disclosure of conflicts of interest violates the State-Owned Enterprises (SOE) Act and the SOE policy – two legal frameworks developed with international financial institutions' assistance to improve governance in state-run entities. Sources revealed that the board has been holding meetings without first ensuring that newly appointed members have no direct or indirect conflicts of interest while making key policy decisions. The board is also responsible for overseeing the Rs3.7 billion PRAL restructuring plan. PRAL serves as the technology arm of the Federal Board of Revenue (FBR). The decision to proceed with meetings without first obtaining conflict of interest declarations from newly appointed members directly violates the SOE Act, SOE Policy, and the Companies Act 2017. The Express Tribune sent queries to PRAL Board Chairman Arif Saeed, FBR spokesperson Dr Najeeb Memon, and PRAL management regarding these violations. Only PRAL management responded, while the chairman and FBR spokesperson remained silent even after four days. "The management of the company is fully cognisant and strives to be compliant with all applicable legal requirements and obligations," PRAL stated in a written response. This suggests the board is operating in violation of the SOE law, which could result in penalties under the Companies Act. Sources said that after receiving the Express Tribune's questions, the PRAL board began drafting a conflict of interest policy. Under SOE policy, all directors and managers must sign a declaration upon appointment. This declaration confirms they have received and understood the policy on conflicts of interest. It also states they will not accept payments, bribes, favours, or inducements that could influence their decisions. Failure to comply could lead to their removal. The government recently appointed the PRAL board, which Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Langrial have praised as highly talented. The board is chaired by Arif Saeed, with independent directors including Salman Akhtar, Dr Muhammad Fareed Zafar, Ehsan Saya, and Nazish Afraz. The Express Tribune asked the chairman about the SOE policy's requirement for directors and managers to declare conflicts of interest. He was also asked about Section 34 of the SOE Policy, which mandates a code of conduct for PRAL board members. Additionally, the chairman was asked about Section 13 of the SOE Act, which defines the term of office for directors. Section 13(2)(f) states that a director can be removed for failing to comply with the SOE's code of conduct and conflict of interest requirements. No response was provided. Meanwhile, PRAL has decided to hire 50 data experts through a third party. Sources raised concerns that this could compromise data protection and privacy. A third party may not ensure the security of sensitive information. The Express Tribune also asked the board chairman if third-party hiring could put taxpayer data at risk. External firms may not be trusted with highly confidential information. Additionally, the chairman was asked whether board members were involved in the hiring process, which falls outside their policy-making role. He did not respond. In its most recent meeting, the PRAL board approved several measures. These include creating an operational unit for FBR's requirements, forming a dedicated data wing for analytics and governance, and assigning experts to validate Change Request Forms (CRFs). The board also created an Apex Committee for project approvals and structured software development teams based on project scope. A Data Governance Policy was implemented, and recruitment for a Chief Information Security Officer (CISO) and Chief Data Officer (CDO) began. The board also formed a committee within the FBR to streamline project prioritisation. Sources said board member Salman Akhtar suggested hiring third-party firms for technical expertise. PRAL has already invited bids for third-party hiring, with a submission deadline of March 4. In December, the federal cabinet approved a Rs3.7 billion supplementary grant for PRAL restructuring. Official documents show the estimated recurring cost for the next fiscal year is Rs4.5 billion. Government documents highlight that PRAL's restructuring is critical to improving the tax-to-GDP ratio. The board has a key role in this effort. According to the cabinet's decision, PRAL will receive a one-line budget, with its board approving the annual budget based on government grants and its own revenue. The restructuring has significant financial implications. The government will provide Rs3.7 billion for the current year, while recurring costs will reach Rs4.5 billion from 2025-26 onwards. Among the major components of the PRAL restructuring are enhancing software development and maintenance capabilities through three modes: in-house development, in-house maintenance only, and outsourcing development to third parties. The plan also includes upgrading hardware and data centres, replacing end-of-life equipment, and establishing an analytics hub.
