Government considers AI-led tax enforcement reform in 2026-27 budget

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Federal Minister of Economic Affairs Ahad Cheema chaired the meeting. —App/File
Federal Minister of Economic Affairs Ahad Cheema chaired the meeting. —App/File

ISLAMABAD: The government is considering digital surveillance system and artificial intelligence-based enforcement reforms in the next budget’s Finance Bill 2026-27.

Federal Economy Minister Ahad Cheema chaired a high-level meeting to consider tax enforcement measures in the upcoming federal budget aimed at reducing tax disparities and strengthening revenue collection.

During the meeting, the FBR team provided a detailed briefing on various proposed tax enforcement measures being considered in the upcoming budget to tackle under-declaration, non-declaration, under-invoicing, tax evasion and smuggling. Participants considered a number of proposals focused on improving transparency, documentation, and enforcement through the use of technology-driven solutions.

Among the key proposals discussed were the introduction of digital surveillance mechanisms and AI-based systems to detect false data in tax returns, strengthen monitoring of under-reporting and curb tax evasion. Additionally, participants discussed the proposed introduction of an electronic auction system for seized goods by customs authorities to ensure transparency and efficiency in the disposal process.

Economy Minister Ahad Cheema said the government will introduce tax enforcement reforms keeping economic growth in mind and does not want to create obstacles in the business environment. He further said that the government fully supports a tax system with minimal human intervention. All participants agreed that the government will ensure a business-friendly environment and promote economic growth through tax reform. It further concludes that digitally automated systems and technology-driven solutions will be a constructive solution.

Federal Minister of Economic Affairs Ahad Cheema directed the FBR to further refine the proposed measures and ensure that all reforms are practical, technically oriented and capable of delivering effective results.



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