Government Considers AI-Based Tax Monitoring for Budget 2026-27
The government is considering new technology-driven measures for the upcoming Budget 2026-27, with a major focus on using artificial intelligence and digital systems to reduce tax evasion and improve revenue collection.
The proposals were discussed during a special meeting chaired by Ahad Cheema, where Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial briefed participants on possible reforms for the next fiscal year.
According to officials, the proposed measures are aimed at tackling issues such as under-reporting, fake declarations, under-invoicing, smuggling, and tax evasion through stronger digital monitoring and automated systems.
One of the key proposals under discussion is the introduction of AI-powered tools that can identify suspicious activity and detect inaccurate information in tax returns.
Officials also reviewed plans for expanding digital monitoring systems to improve transparency and documentation across the tax network.
Another proposal includes launching an electronic auction system for confiscated customs goods to make disposal procedures more transparent and efficient.
During the meeting, Ahad Cheema emphasized the importance of reducing direct human involvement in the tax process to help improve efficiency and minimize opportunities for corruption.
The discussion comes as Pakistan prepares the federal budget amid efforts to increase tax collection, expand the tax base, and strengthen the economy without imposing major new taxes.
Over the past two years, the Federal Board of Revenue has increasingly adopted digital enforcement measures, including data integration systems, retail monitoring, and electronic documentation initiatives to improve tax compliance.
