The federal government is considering the introduction of a digital monitoring mechanism and artificial intelligence (AI)-based tax reforms in the upcoming Federal Budget 2026-27 as part of broader efforts to improve transparency, curb tax evasion and modernize the taxation system.
The proposals came under discussion during an important meeting chaired by Federal Minister for Economic Affairs Ahad Cheema to review tax reform measures being considered for the next federal budget.
During the meeting, officials of the Federal Board of Revenue briefed participants on various proposals aimed at strengthening tax enforcement and improving revenue collection.
According to officials, the proposed reforms focus on preventing under-reporting, non-reporting, under-invoicing, tax evasion and smuggling through increased use of technology and automation.
The meeting reviewed multiple proposals related to improving transparency and enforcement mechanisms through digital systems. Among the key proposals under consideration were the introduction of a digital monitoring system and an AI-based framework to detect and prevent tax evasion.
Participants also discussed the introduction of an e-auction system for the auction of goods seized by customs authorities. Officials said the proposed e-auction mechanism would help ensure greater transparency and efficiency in the disposal process.
Speaking during the meeting, Ahad Cheema said the government intended to introduce tax reforms while keeping economic growth and business facilitation in focus.
He said the objective of the reforms was not only to improve tax collection but also to strengthen the business environment and support overall economic development.
The minister emphasized that the government fully supported a taxation system with minimal human intervention, adding that digitally automated systems and technology-based solutions would prove to be a positive step for both taxpayers and institutions.
Ahad Cheema said strengthening the digital tax infrastructure would reduce the need for citizens to visit FBR offices physically, while the proposed AI-based tax system would make procedures easier for both the public and tax officials.
He directed the FBR to further refine the proposed reforms in consultation with relevant stakeholders and ensure that all measures were practical, technology-driven and capable of delivering effective results.
The meeting was attended by Federal Minister Mosaddiq Malik, Adviser to the Prime Minister Haroon Akhtar Khan, Minister of State Bilal Azhar Kayani, Chairman FBR Rashid Mahmood Langrial, Attorney General Mansoor Usman Awan and other senior officials.