ISLAMABAD:
The federal government has proposed sweeping changes to Pakistan’s tax administration system through the Finance Bill 2027, including the establishment of a national faceless centre, the introduction of faceless audit and assessment mechanisms and stricter enforcement measures against tax fraud and false invoicing.
According to details, the amendments to tax laws proposed in the federal budget for fiscal year 2026-27 would empower the Federal Board of Revenue (FBR) to establish a National Faceless Center aimed at reducing direct interaction between tax officials and taxpayers.
Under the proposed framework, tax cases would be assigned to officials through an automated system, while audits and assessments would be conducted electronically.
Sources said the faceless audit and assessment system aims to minimize human intervention and discretionary powers in tax administration.
All tax-related procedures would be carried out through electronic means, while the identities of officials working at the faceless center would remain confidential.
Their decisions could not be challenged on the grounds of identity, although physical verification of companies, assets and investments would continue.
At the same time, the FBR has decided to intensify its fight against tax fraud and false billing. The finance bill proposes severe penalties and stricter enforcement measures for companies that do not 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 increasing to Rs 5 million in cases of continued non-compliance. Sources said companies that do not complete integration within the prescribed time frame could also be sealed.
The finance bill also proposes strict measures against the issuance of false and fictitious tax invoices.
Those found issuing fake invoices could face penalties equal to the full value of the invoice, while authorities are also considering publishing a public list of offenders.
