The Federal Board of Revenue has begun a major digital transformation with the launch of an AI-powered audit system. This system will examine over seven million income tax returns filed across Pakistan. The main goal is to bring fairness, transparency, and accountability to the tax process by reducing human interference and detecting tax evasion more effectively through modern technology.
AI to Detect Low Tax Payments
According to official details, tax returns showing less than twenty-five percent tax paid will be automatically flagged for audit. Artificial intelligence tools will carefully review data patterns and identify possible cases of underreporting or fraud. This advanced system is expected to change how audits are done, allowing for accurate assessments and reducing errors that often occur during manual reviews.
Thousands of Officers Involved
The FBR has engaged about eight thousand Inland Revenue officers and four thousand auditors in this large-scale initiative. They will work with AI-powered analytics tools to find irregularities and compare declared income with actual data. An FBR spokesperson stated that this technology-driven audit will make the process data-based and fair, ensuring that every taxpayer is treated equally without bias or manual favoritism.
Also Read: Mobile NADRA Vans to Visit Lahore for CNIC Services
Three-Stage Audit Process
The audit operation will be carried out in three clear phases. It will begin with industrial and commercial sectors, move on to registered companies, and finally target individual and salaried taxpayers. This structured approach allows the FBR to manage the process efficiently while addressing high-value sectors first. It also helps build trust among taxpayers by maintaining clarity in each stage of the audit.
Expected Growth in Revenue Collection
By October, the FBR had already received nearly 5.9 million tax returns and collected an extra nine billion rupees. With AI at the core of its new system, authorities believe tax collection will rise steadily in the coming months. The initiative aims not only to catch tax evaders but also to encourage compliance. This modern approach marks a crucial step toward a transparent and digitally strengthened taxation system in Pakistan.