Govt Considers AI Based Tax Reforms For Budget

ISLAMABAD: (Web Desk) – The federal government is considering introducing digital monitoring systems and artificial intelligence-based tax reforms in the upcoming Federal Budget 2026-27 to improve transparency, strengthen revenue collection and modernize Pakistan’s taxation framework.

The proposals were discussed during a key meeting chaired by Ahad Cheema to review planned tax reform measures for the next fiscal year. Officials from the Federal Board of Revenue briefed participants on several initiatives aimed at enhancing tax enforcement through technology and automation.

According to officials, the proposed reforms are designed to tackle under-reporting, non-reporting, under-invoicing, tax evasion and smuggling by reducing manual processes and increasing digital oversight. The meeting particularly reviewed plans for an AI-powered system capable of identifying suspicious transactions and improving compliance mechanisms.

Participants also discussed launching an electronic auction system for goods confiscated by customs authorities. Officials stated that the proposed e-auction mechanism would increase transparency and efficiency in the disposal of seized items.

Speaking during the meeting, Ahad Cheema said the government wanted to implement reforms that not only improve tax collection but also support economic growth and facilitate businesses. He emphasized that a taxation system with minimal human intervention would benefit both taxpayers and institutions through faster and more transparent procedures.

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The minister added that stronger digital tax infrastructure would reduce the need for citizens to physically visit FBR offices, while AI-driven systems could simplify tax-related processes for the public and officials alike.

Ahad Cheema directed the FBR to further refine the proposals in consultation with stakeholders to ensure the reforms remain practical, technology-driven and effective. The meeting was attended by senior government officials, including Mosaddiq Malik, Bilal Azhar Kayani and FBR Chairman Rashid Mahmood Langrial.