FBR and PRAL Sign Landmark Digitalization Pact to Curb Tax Evasion
ISLAMABAD: In a major move to document the economy and plug massive revenue leakages, the Federal Board of Revenue (FBR) has formalised a strategic agreement with Pakistan Revenue Automation Limited (PRAL) for the implementation of the Track and Trace System and the e-Bilty initiative.
The agreement was inked at the FBR Headquarters, marking a significant step towards the digital transformation of the country’s tax machinery. Under this arrangement, PRAL—the technical arm of the FBR—will provide comprehensive IT support and infrastructure to ensure the seamless execution of these digital interventions.
Cracking Down on Smuggling and Misdeclaration The e-Bilty system is designed to monitor the movement of goods across the country in real-time. By mandating digital invoices and electronic bills of lading for commercial transport, the government aims to eliminate the practice of moving undocumented cargo, which has long deprived the national exchequer of billions in sales tax and duties.
Sources within the FBR revealed that the system will be integrated with provincial excise departments and the National Highway Authority (NHA) to ensure that no commercial vehicle can operate without a verified digital footprint.
Focus on High-Yield Sectors The digitalization drive specifically targets high-tax-risk sectors, including tobacco, sugar, cement, and fertilizers. The Track and Trace System will allow for the electronic monitoring of production volumes, preventing manufacturers from under-reporting their output.
This development comes at a time when Pakistan is under pressure from the International Monetary Fund (IMF) to broaden the tax base and increase the tax-to-GDP ratio through structural reforms rather than merely hiking rates for existing taxpayers.
Modernizing Tax Administration A senior FBR official stated that the partnership with PRAL is not just about technology but about creating a “transparent and paperless” environment. “The goal is to reduce human interaction between taxpayers and tax collectors, which is a primary source of corruption. With e-Bilty and Track and Trace, we are moving towards a data-driven regime,” he added.
The government expects these measures to significantly boost revenue collection in the final quarter of the current fiscal year, helping to meet the ambitious targets set in the federal budget.