ISLAMABAD:
The federal government has proposed sweeping changes to Pakistan’s tax administration system under the Finance Bill 2027, including the establishment of an anonymous national center, the introduction of anonymous audit and assessment mechanisms, and stricter enforcement measures against tax evasion and false invoicing.
According to details, the amendments to tax laws proposed in the federal budget for the financial year 2026-27 would empower the Federal Board of Revenue (FBR) to establish a faceless National Center aimed at reducing direct interactions between tax officials and taxpayers.
Under the proposed framework, tax records would be assigned to officers through an automated system, while audits and assessments would be done electronically.
Sources said the anonymous audit and assessment system aims to minimize human intervention and discretionary powers in tax administration.
All tax procedures would be conducted by electronic means, while the identity of agents working at the anonymous center would remain confidential.
Their decisions could not be challenged on the basis of their identity, although physical verification of businesses, assets and investments would continue.
At the same time, the FBR has decided to intensify its crackdown against tax evasion and fake invoicing. The finance bill proposes heavy penalties and tougher enforcement measures for businesses that fail to integrate into the digital tax system.
Under the proposed amendments, companies that fail to digitally integrate with the FBR could face fines of up to Rs 1 million, with penalties of up to Rs 5 million for persistent non-compliance. Sources said companies that fail to complete their integration within the stipulated time frame could also be shut down.
The finance bill further proposes strict measures against the issuance of false and fictitious tax invoices.
Those issuing fake invoices could face penalties equal to the full value of the invoice, while authorities are also considering publishing a public list of violators.
