2 days ago
Pakistan to launch tomorrow simplified digital tax returns for salaried class
ISLAMABAD: Pakistan's Federal Board of Revenue (FBR) will launch tomorrow, Tuesday, simplified digital tax returns for salaried individuals, according to Prime Minister Shehbaz Sharif's office, amid Islamabad's efforts to expand the national tax base.
The statement came after a meeting Sharif presided over to review progress on tax reforms which are part of his government agenda to stabilize the South Asian economy.
Officials informed the prime minister that digital, concize and user-friendly tax returns will also be available for taxpayers of other classes from July 30, along with Urdu-language returns for the salaried class.
'A third-party validation should be ensured for the transparency of all FBR reforms,' the prime minister was quoted as saying by his office. 'Public awareness campaign should be launched regarding the ease of filing tax returns so that more and more people file returns under the new system.'
In June, Pakistan set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) as it unveiled federal budget for fiscal year 2025-26. The target represents a 9 percent increase compared to the outgoing fiscal year's target.
Sharif said increasing the tax base and reducing the burden on the poor were his government's top priorities, praising the FBR for the implementation of an artificial intelligence-based tax assessment system.
'The prime minister directed provision of special facilities to small and medium-sized businesses to join the digital invoicing system,' his office said.
Pakistan's policy reforms, also required under a $7 billion International Monetary Fund (IMF), have helped restore macroeconomic stability and rebuild investor confidence in the government, despite persistent external challenges, according to IMF country representative Mahir Binici.
He, however, cautioned that 'elevated trade tensions, geopolitical fragmentation, and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook,' underlining the urgent need for prudent and forward-looking policy actions.
'Structural reforms remain central to Pakistan's long-term economic sustainability, particularly reforms that strengthen tax equity, improve the business climate, and encourage private-sector-led investment,' Binici said during a guest lecture at an Islamabad-based think tank last week.
