
In a bid to curb tax evasion and smuggling of vehicles in the country, the Federal Board of Revenue (FBR) has announced plans to introduce a digital tracking system for freight vehicles across Pakistan.
The development was brought to light in a high-level meeting chaired by Prime Minister Shehbaz Sharif. With FBR Chairman Rashid Mahmood Langrial providing an overview of the system, the initiative was discussed in detail during the meeting.
The impending digital tracking system will be installed on major highways, equipping freight vehicles with electronic tags and monitoring devices to enable authorities to track goods being transported.
The vehicle tracking system forms part of FBR's efforts to digitise the economy and enhance tax collection by increasing revenue and transparency, PhoneWorld reported.
Its implementation will be carried out in two phases, starting with a pilot in one major city before establishing across Pakistan.
Alongside the digital tracking system, a digital monitoring system will be implemented at airports and seaports to oversee imports and exports, whose data will be integrated into local and international databases.
It was also learned that artificial intelligence (AI) will be deployed to detect tax fraud and smuggling. This will ensure improved accuracy and minimal manual errors.
Despite these initiatives, the FBR has purportedly failed to meet revenue targets, as the authority fell short by nearly Rs831 billion in the first ten months of the fiscal year.
With the upcoming digital tracking system in place, the steep gap in FBR's revenue collection is expected to be addressed in the near future.