The Federal Board of Revenue (FBR) in Pakistan and the National Database and Registration Authority (NADRA) have joined hands to enhance tax compliance, combat evasion, and expand the country’s tax base. They plan to share data to determine the actual income of existing taxpayers, register new ones, and finalize tax profiles of non-filers.
Additionally, FBR intends to restructure the Pakistan Revenue Automation Limited (PRAL) to support its digitization and automation efforts. While there won’t be mass layoffs, redundant employees will be terminated to make PRAL more efficient in this transition.
FBR and NADRA had previously collaborated, sharing data to broaden the tax base and identify non-filers. They are leveraging Section 175B of the Income Tax Ordinance, which allows NADRA to share records and information for tax base expansion and compliance purposes.
The Chairman of FBR, Malik Amjed Zubair Tiwana, emphasized their commitment to promoting a tax culture and increasing revenue generation. The goal is to use comprehensive data from NADRA to determine the actual income of taxpayers and bring new individuals into the tax net.
In a separate move, the FBR aims to bolster PRAL’s technical capabilities to support the digitization and automation of their tax-related projects, ensuring a robust IT infrastructure for the FBR’s operations.