Feasibility of implementing a blockchain based Value Added Tax System in Pakistan's Federal Board of Revenue
Iqbal, Naveed (2025)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025111828522
https://urn.fi/URN:NBN:fi:amk-2025111828522
Tiivistelmä
Persistent revenue leakages, limited auditability, and fragmented data flows remain a challenge for Pakistan’s Value Added Tax (VAT) administration. This study examined the feasibility of permissioned blockchain VAT and electronic invoicing design for the Federal Board of Revenue (FBR) Pakistan. The investigation emphasizesfour core dimensions: infrastructure readiness, economic viability, security and fraud reduction, and user acceptance.
A quantitative, cross-sectional survey was conducted among 114 key stakeholders, including FBR officials, corporate taxpayers, and tax consultants, using a five-point Likert instrument. The scales showed strong reliability and validity with readiness to adaptation through training and support, further indicating that the data were consistent and trustworthy. Overall, respondents conveyed positive views about the economic and security measurements of the proposed system, while evaluating infrastructure readiness as moderate, suggesting focused technical upgradation. Economic viability arose as the strongest factor influencing user acceptance, with security/fraud reduction making a smaller but positive contribution. Group comparisons show no statistically significant differences across stakeholder categories, indicating broad alignment. Collectively, with around 50% of the variance in user acceptance, the model suggests a solid explanation of stakeholders’ intention to adopt the system. The economic valuation lines up with these findings; the project comes with a positive Net Present Value and Benefit Cost Ratio with the payback period in the second and third year. Sensitivity assessments varying fraud reduction benefits also stayed positive, indicating robustness.
Taken together, the results endorse that a permissioned blockchain VAT/e-invoicing system for the Federal Board of Revenue, Pakistan, is both technically and economically feasible provided phased implementation, targeted infrastructure upgrades, comprehensive user training, and regulatory support.
A quantitative, cross-sectional survey was conducted among 114 key stakeholders, including FBR officials, corporate taxpayers, and tax consultants, using a five-point Likert instrument. The scales showed strong reliability and validity with readiness to adaptation through training and support, further indicating that the data were consistent and trustworthy. Overall, respondents conveyed positive views about the economic and security measurements of the proposed system, while evaluating infrastructure readiness as moderate, suggesting focused technical upgradation. Economic viability arose as the strongest factor influencing user acceptance, with security/fraud reduction making a smaller but positive contribution. Group comparisons show no statistically significant differences across stakeholder categories, indicating broad alignment. Collectively, with around 50% of the variance in user acceptance, the model suggests a solid explanation of stakeholders’ intention to adopt the system. The economic valuation lines up with these findings; the project comes with a positive Net Present Value and Benefit Cost Ratio with the payback period in the second and third year. Sensitivity assessments varying fraud reduction benefits also stayed positive, indicating robustness.
Taken together, the results endorse that a permissioned blockchain VAT/e-invoicing system for the Federal Board of Revenue, Pakistan, is both technically and economically feasible provided phased implementation, targeted infrastructure upgrades, comprehensive user training, and regulatory support.