FBR vows simpler, digital-first tax system

The Federal Board of Revenue (FBR) is working to make the country's tax system simpler, more transparent and easier for taxpayers to navigate, with a particular focus on expanding digital facilities, the tax authority's chairman said. Speaking to a delegation from the Lahore Tax Bar Association on Wednesday, FBR Chairman Rashid Mahmood Langrial said consultation with stakeholders, including tax practitioners, would be strengthened to ensure quicker resolution of tax-related problems and more inclusive policymaking. "Facilitating taxpayers and modernising the tax administration system through technology remain among the board's core priorities," he said. During discussions, the tax bar delegation raised several operational concerns affecting both taxpayers and practitioners. Among them was a request to set up a dedicated PRAL office in Lahore to resolve technical and system-related glitches on the spot, rather than routing complaints through distant channels. Such glitches have long been a source of complaint among tax filers, particularly during peak filing periods when the FBR's online portal, IRIS, faces heavy traffic. The delegation also pressed for clearer jurisdictional boundaries and a smoother process for transferring cases between RTO-I and RTO-II, arguing that overlapping or unclear jurisdiction often delayed routine tax matters. It further sought relief on minimum tax issues and other practical difficulties that filers regularly encounter. Citing continuing technical and legal hurdles, the delegation asked for an extension in the deadline for filing income tax returns. Pakistan's tax filing season typically sees last-minute rushes, with the FBR extending deadlines in previous years as well amid similar complaints of portal slowdown and compliance bottlenecks. The bar also flagged difficulties in updating taxpayer records under Section 181 of the Income Tax Ordinance, 2001, which governs registration and changes to taxpayer profiles, along with mismatches in balance linking and reconciliation between income tax and sales tax returns – an issue that has periodically complicated filings for businesses operating under both regimes. The Lahore Tax Bar Association thanked the FBR leadership for hearing its concerns and engaging constructively during the meeting. It expressed hope that the issues raised would be taken up seriously and addressed promptly, which it said would ease compliance burdens for taxpayers and practitioners while helping the FBR in a more efficient tax administration. The FBR has been under pressure to broaden Pakistan's narrow tax base and meet ambitious revenue targets set under an agreement with the International Monetary Fund, making digitisation and taxpayer facilitation central to its stated reform agenda in recent years.