In an effort to promote efficiency and transparency in the tax collection system, the Federal Board of Revenue (FBR) has entered into information sharing agreements with two provincial revenue boards, namely the Board of Revenue Sindh and the Board of Revenue Balochistan.
These agreements, signed on April 19th and April 28th, 2023 respectively, mark an important step towards realizing the vision of the Prime Minister to enhance digital integration in tax collection activities.
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Under the terms of the agreements, the two organizations will share specified digital data, including information about land/property ownership and agricultural income. This data sharing will help improve tax collection activities in their respective domains, allowing for better identification of tax evaders and broader tax base coverage.
The agreements were signed by Member (R&S), Board of Revenue, Government of Sindh, Mr. Syed Ahmed Ali Shah and Senior Member Board of Revenue Balochistan Mr. Roshan Ali Shaikh, respectively. FBR was represented by Member (IT), Mr. Abdul Majid Yousfani in both agreements.
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The agreements also envisage the development of integrated IT-based platforms that will allow for automated exchange of data in the future. This will further enhance the efficiency of tax collection activities and improve transparency in the system. FBR has been making consistent efforts to acquire third-party data by linking its IT systems with different provincial departments and other organizations. Similar agreements have already been signed with provincial excise and taxation departments and development authorities, from where valuable data is being acquired.
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It is worth noting that these agreements are in line with the government’s broader efforts to promote digitization and transparency in various sectors of the economy. By leveraging the power of digital technology and data analytics, tax collection activities can become more efficient and less prone to corruption and errors. Moreover, the increased transparency can help build trust between taxpayers and the government, leading to better compliance rates and ultimately contributing to the overall economic growth of the country.
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In conclusion, the recent data sharing agreements between FBR and provincial revenue boards are a positive step towards enhancing efficiency and transparency in the tax collection system of the country. By sharing digital data and developing integrated IT-based platforms, tax collection activities can become more efficient, broader tax base coverage can be achieved, and corruption and errors can be reduced. The government’s continued efforts to promote digitization and transparency in various sectors of the economy are likely to have a positive impact on the country’s economic growth in the long run.