SOHAIL SARFRAZ

ISLAMABAD: The documented steel sector is facing serious difficulties in the operationalisation and implementation of budgetary measures (2026-27) aimed at promoting corporatisation, documentation, digitisation and curbing tax evasion and broadening the tax base.

In a communication to Rashid Mahmood Langrial Chairman Federal Board of Revenue, the steel sector has requested for expediting operationalisation of budgetary reforms/ measures and fast-track resolution of industry related day to day issues.

The industry stated that the initiatives undertaken by the Federal Board of Revenue, particularly those aimed at delegation of authority and decentralization to the second tier of leadership are highly commendable. These measures have created a palpable and positive change in the working environment, especially with the appointment of capable officers at key positions.

Similarly, the creation of the position of Member Strategic Transformation is a highly practical and forward-looking decision, which reflects FBR’s commitment to institutional reform.

The Federal Budget 2026–27 introduced a number of significant measures aimed at promoting corporatization, documentation, digitization and, above all, curbing tax evasion and broadening the tax base. These initiatives are highly commendable and have generated considerable hope for the revival and growth of the steel industry.

However, while the policy direction is encouraging, the industry is currently facing difficulties in the operationalisation and implementation of these budgetary measures.

In particular, inordinate delays at the level of Pakistan Revenue Automation (Private) Limited (PRAL) are creating unnecessary difficulties for taxpayers. Even routine and relatively minor day-to-day matters often remain unresolved for extended periods, thereby undermining the effectiveness of otherwise progressive policy decisions.

In this regard, the industry requested FBR Chairman for urgent intervention on the following matters:

1.Corporatization of AOPs into Corporate Entities:

The transition of Associations of Persons (AOPs) into corporate entities is an important reform. However, prolonged delays by PRAL in the merger/linkage of old and new STRNs/NTNs despite relentless efforts on the part of Inland Revenue Operations related authorities, are creating difficulties for industry. A time-bound mechanism may kindly be introduced to resolve these cases on an urgent basis.

2.Establishment of a Dedicated Industry Facilitation Mechanism:

At present, there appears to be no effective mechanism at FBR HQs for prompt resolution of day-to-day operational issues being faced by industry. We respectfully propose the establishment of a dedicated Facilitation Team at FBR HQs, headed by a senior-level officer and supported by a small team of competent and motivated officials.

The team could serve as a single-window coordination mechanism for resolving genuine operational issues involving PRAL, Chief Commissioners, Commissioners and other relevant formations, with matters relating to industry being accorded appropriate priority, the industry said.

3.Replacement of the Traditional DAK/Post System with Fast-Track Digital Communication:

A considerable amount of correspondence between FBR HQs and the offices of Chief Commissioners and Commissioners is still being conducted through the traditional DAK/ordinary postal system. This inevitably consumes considerable time and causes avoidable delays in decision-making and implementation. The industry requested that the entire FBR network may be transitioned to a fast-track official email and digital correspondence system.

The industry believed that the above measures would improve the pace of implementation of the reforms introduced through the Federal Budget 2026–27 and help translate the FBR’s progressive policy initiatives into tangible results on the ground.

The urgent attention is needed, particularly for the establishment of a dedicated facilitation mechanism and the removal of delays at the PRAL level, documented steel sector added.