Karachi, January 20, 2024 – The Federal Board of Revenue (FBR) has unveiled plans to launch a door-to-door campaign targeting non-filer retailers.
This strategic initiative aims to streamline tax filing processes and substantially expand the tax base across four provincial capitals and Islamabad.
Official sources within the FBR revealed that the campaign is part of the broader Strengthening Revenue Mobilization Program, a comprehensive effort to reform tax policies and administration. The FBR, in alignment with its commitments to the IMF, is actively working on advancing reforms to generate additional revenue, particularly from sectors that are currently undertaxed. These endeavors are being supported by an IMF tax diagnostic exercise, providing crucial insights to shape the agenda for future reforms.
One key aspect of the reform agenda is the adoption of a documentation law, which is currently in the final stages of legal procedures for adoption. This law mandates 145 organizations to regularly share information with the FBR, facilitating more effective monitoring and oversight. The move towards a comprehensive and technology-driven approach is also evident in the imminent implementation of the e-invoicing system, scheduled to be operational by December 2023. This system is expected to enhance transparency and efficiency in financial transactions, reducing the scope for tax evasion.
As part of the broader strategy, the FBR is set to establish a Compliance Risk Management team within its ranks, focused on comprehensive risk analysis and analytics. This team will play a crucial role in identifying potential areas of non-compliance and developing targeted strategies to address them.
The door-to-door campaign, a cornerstone of this multifaceted approach, will be conducted in four provincial capitals and Islamabad. Its primary objective is to identify and register non-filing retailers, bringing them into the tax net. By doing so, the FBR aims to not only enhance revenue but also foster a culture of compliance among businesses.
This proactive approach aligns with international best practices and reflects the commitment of the Pakistani government to strengthen its fiscal policies. The concerted efforts to revamp the taxation system underscore the importance of creating a fair and transparent environment that encourages businesses to contribute to the country’s economic development through their tax obligations.
While the FBR acknowledges the challenges associated with these ambitious reforms, officials remain optimistic about the long-term benefits for the economy. The success of the door-to-door campaign will be closely monitored, and its outcomes are expected to pave the way for further targeted initiatives aimed at fortifying Pakistan’s revenue generation mechanisms. As the country moves towards a more robust and technologically-driven tax administration, these reforms are poised to contribute significantly to sustainable economic growth and financial stability.
