National Targeting System being introduced to prevent sales tax evasion, PM told

Prime Minister Shehbaz Sharif was informed on Tuesday that a National Targeting System was being introduced to prevent sales tax evasion in Pakistan.

The prime minister chaired a review meeting on the Federal Board of Revenue (FBR) affairs and ongoing reforms. He was informed that under the new system, vehicles involved in the transportation of goods will be directly tracked using e-tags and digital devices, said a statement by the Prime Minister’s Office (PMO).

PM Shehbaz orders crackdown on tax evasion, under-invoicing

“Additionally, an e-Bilty system is being introduced, which will be integrated into the FBR system. A digital monitoring system will be installed at all major highways and city entry points.”

The initiative aims to eliminate smuggling and sales tax evasion, reduce inconvenience for ordinary citizens, and save time. The system is expected to facilitate digitisation of the economy and significantly increase revenue.

The meeting was also informed that a Customs Targeting System was also being introduced at ports and airports to automate the monitoring of imports and exports.

As per the statement, the system will use artificial intelligence and integrate with domestic and international databases to combat smuggling and tax fraud.

The premier emphasised the need for decisive action to correct what he described as “70 years of mismanagement” in the tax system.

He stated that while maximum facilitation would be provided to honest taxpayers and businesses, those involved in tax evasion would face strict legal action without any concessions.