Tax Officers Could Start Leaving FBR

The government has unveiled a new technology-driven tax administration model that will gradually replace the traditional officer-led system with a data-driven, faceless framework aimed at reducing human intervention in tax collection and enforcement.

Speaking at the National Tax Seminar jointly organized by the Pakistan Tax Bar Association (PTBA) and the Lahore Tax Bar Association (LTBA), Advisor to the Finance Minister Khurram Schehzad said Pakistan’s New Tax Operating Model (NTOM) marks a structural shift toward a technology-enabled and accountable tax administration.

Under the new model, audit, assessment and field operations will be separated into specialized functions supported by centralized data analytics, digital technologies and risk-based compliance systems. The reforms are designed to reduce discretionary powers, minimize direct interaction between taxpayers and tax officials, strengthen taxpayer rights, and improve transparency and efficiency.

Schehzad said compliant taxpayers will receive simpler and more predictable services, while enforcement will increasingly rely on data analytics to detect tax evasion instead of discretionary action by tax officials.

He added that the FY2026-27 budget focuses on broadening the tax base rather than increasing the burden on existing taxpayers. The budget also includes measures to support salaried individuals, improve business competitiveness, assist exporters, advance tariff reforms and promote documentation of the economy.

Schehzad said the government’s wider reform agenda spans tax administration, public debt management, privatization, state-owned enterprises, pension reforms, energy sector restructuring, Digital Pakistan initiatives, capital market development and improved access to finance. According to him, these reforms are strengthening institutions, improving governance and creating a more competitive investment environment.

He also said Pakistan’s improving macroeconomic outlook is reflected in stronger sovereign credit ratings, successful IMF program reviews, renewed access to international capital markets, growing investor confidence and positive assessments from international financial institutions.