Key Takeaways
- ECC approved Rs. 4 billion for FBR to support its digital transformation.
- FBR faces persistent issues with its IRIS tax system, affecting taxpayers.
- Grant aims to upgrade digital infrastructure and improve revenue collection.
The Economic Coordination Committee (ECC) has approved a Rs. 4 billion Technical Supplementary Grant (TSG) for Pakistan Revenue Automation Limited (PRAL) to support the restructuring and implementation of the Federal Board of Revenue’s (FBR) Transformation Plan. This funding was approved despite recent issues reported in the tax collector’s IRIS portal.
The 2026 return filing season is set to end on October 15, 2026, and PRAL provides technology and automation support to FBR, including systems used for tax administration. The grant is aimed at FBR’s efforts to upgrade its digital infrastructure and transform its revenue collection system.
FBR has faced persistent issues with its IRIS tax system, including disruptions and difficulties reported by taxpayers and tax professionals. These issues have raised concerns about the reliability and efficiency of the system.
The ECC also approved an amendment to SRO 693(I)/2006 concerning Additional Customs Duty on locally manufactured tyres, with the measure aimed at supporting domestic manufacturing. This decision is separate from the Rs. 4 billion grant for FBR.
Additionally, the committee approved a financing framework developed by the State Bank of Pakistan to bring eligible Agency Financial Institutions under existing risk coverage schemes for small enterprises and small farmers. This move is part of a broader strategy to support economic growth and financial inclusion.
PRAL’s role in providing technology and automation support to FBR is crucial for the modernization of tax administration. The Rs. 4 billion grant is expected to significantly enhance the efficiency and effectiveness of FBR’s operations.
Despite the approval, the ongoing issues with the IRIS portal continue to pose challenges for taxpayers and tax professionals. The FBR is under pressure to address these problems and ensure a smoother tax filing process.
The ECC’s decision to approve the Rs. 4 billion grant for FBR’s digital transformation is a significant step towards modernizing the tax system. However, the effectiveness of this funding will depend on the successful implementation and resolution of existing issues.
