Reforming Pakistan’s tax system is crucial, with a focus on rationalizing laws, broadening the tax base, and restructuring the Federal Board of Revenue (FBR). The current system faces challenges, including a narrow tax base, complex laws, and issues with tax administration. Efforts to increase the number of active taxpayers have been limited, and there is a need to address trust deficits and encourage compliance. Rationalizing taxation laws and enhancing efficiency through automation are priorities. Additionally, there is a need to ensure independence in decision-making processes to guarantee fairness and due process. Overall, comprehensive reform is necessary to create a more efficient and equitable tax system in Pakistan, which will contribute to sustainable economic growth in the long term.
