Karachi, December 24, 2023 – The Federal Board of Revenue (FBR) has initiated a monthly acquisition of detailed information on car buyers from various stakeholders.
This move, outlined in the updated Income Tax Rules, 2002 for the tax year 2024, aims to identify potential taxpayers and boost revenue streams.
The FBR has intensified its efforts to gather comprehensive details about car buyers on a monthly basis. Official sources reveal that manufacturers, motor vehicle dealers, registration authorities, banks, and leading companies are all mandated to provide specific information about car purchasers. This systematic approach is a part of the FBR’s broader strategy to enhance tax oversight and minimize tax evasion.
The FBR’s decision to acquire monthly data on car buyers aligns with the recently issued Income Tax Rules, 2002, updated for the tax year 2024. These rules elaborate on the mandatory requirement for stakeholders, including manufacturers and registration authorities, to furnish a detailed statement regarding car buyers. The objective is to create a transparent and accountable system that aids in effective tax administration.
The furnished statement must include a range of critical details about the sale of motor vehicles. This includes the name and address of the purchaser or lessee, their NTN/CNIC, the registration number of the motor vehicle, make/model/engine capacity, year of manufacture, date of the first registration of the vehicle in Pakistan, registered capacity/laden weight of the vehicle, and the ex-factory price of the motor vehicle. This wealth of information ensures a comprehensive understanding of each transaction, facilitating better tax monitoring.
FBR sources emphasize that the acquired data on car buyers will play a pivotal role in identifying potential taxpayers. By cross-referencing this information, tax authorities can pinpoint individuals who may have previously gone unnoticed. This proactive approach aligns with global best practices in tax administration, where leveraging technology and data analytics is increasingly becoming the norm.
The primary goal of this initiative is to generate additional revenue by curbing tax evasion effectively. With a more detailed understanding of car transactions, the FBR can identify discrepancies and take corrective measures promptly. This not only contributes to a fairer taxation system but also ensures that those who try to evade taxes are held accountable.
The FBR’s decision to acquire monthly details of car buyers signifies a significant step towards modernizing tax administration in Pakistan. This proactive approach not only enhances taxpayer identification but also acts as a powerful tool in preventing tax evasion, ultimately fostering a more transparent and accountable financial system.
