The Federal Board of Revenue has introduced a National Faceless Centre in Islamabad for carrying out tax audit and assessment activities under a centralized digital system to minimize direct interaction between the taxpayer and the tax officer.
In line with Pakistan’s efforts towards digitization of tax administration and minimizing direct taxpayer-tax official interactions, the Federal Board of Revenue (FBR) has launched the National Faceless Centre (NFC) in Islamabad.
The centre is established within the new Tax Operating Model of the government and under the legal structure provided by the Finance Act 2026. FBR has been empowered under the law to establish a National Faceless Centre and to allocate tax functions via technology based process.
The new system will involve a computer-driven, risk-based selection of tax cases, instead of being picked by a specific officer. Cases will also be distributed via an automatic system and not be geographically limited.
The system differentiates between important phases in a tax case. The audit will be done by one officer, the assessment by another officer, and the work will be reviewed for quality control by a third officer prior to the issuance of an order. This is designed to ensure that no one official has the ability to control a case from selection to final decision.
Communication with the taxpayers will be done electronically via FBR’s IRIS system. Notices, responses and hearings will be conducted electronically, with physical verification or recovery, as required by law, to be the responsibility of separate field teams.
The National Faceless Centre will have separate units for faceless audit, faceless assessment and quality control and field operations. A Programme Management Unit has also been set up to manage implementation.
The aim of the reform is to decrease the discretionary intervention and physical contact in tax proceedings. The overall goal, the government has stated, is to “standardize, data-ize and clarify tax administration.
The new framework also involves an artificial intelligence and risk-management aspect. Previous briefings to the National Assembly indicated that the system would leverage AI-driven risk tools, randomized case allocation, virtual hearings, and other digital protections during its implementation.
The government aims to roll out the initial phase of the faceless Inland Revenue system from October 1, 2026, and complete it by 2027. The first phase includes a National Faceless Audit Wing and a Faceless Assessment Unit.
The reform is a part of the broad modernization efforts of the FBR, which involve the use of third party data, algorithmic processes and the centralization of digital systems. Earlier, the Finance Ministry had stated that the National Faceless Centre would be developed using pilot and phased approach before being rolled out across the country.
Concerns have also been raised regarding data security, algorithmic decision-making, and taxpayer rights and accountability in the proposed system. The committee of the National Assembly was informed of the need for protection against manipulation and tampering of data, and emphasized transparency in the implementation process.
Once the centre is set up, the attention will be on getting it ready for operations and the launch of the first phase in October. Its performance will help Pakistan shift from an officer-driven tax audit and assessment system to a more centralized digital system.
