Karachi, November 6, 2024 – In a decisive move to bolster Pakistan’s tax base, the Federal Board of Revenue (FBR) has launched the registration of over 1.35 million potential taxpayers as part of its broadening of the tax base (BTB) initiative.
This ambitious step aims to enhance national revenue collection by incorporating individuals and entities that have not yet fulfilled their tax obligations.
The FBR’s latest report reveals that a total of 46 sets of third-party data have been shared with field offices across the country to facilitate the registration of new taxpayers. As a result, more than 1,354,009 previously unregistered taxpayers have been identified for inclusion in the formal tax system. This move comes as part of the government’s broader fiscal reforms aimed at addressing Pakistan’s tax shortfall and improving compliance among its citizens.
For fiscal year 2024, the Special Investment Facilitation Council (SIFC) set an ambitious target of registering 1 million new taxpayers, a goal the FBR is aggressively pursuing with a multi-faceted strategy. The board’s efforts to expand the tax net are underscored by the strategic use of technology, data analytics, and enhanced collaboration with key government agencies.
Strategic Measures for Taxpayer Registration
The FBR has employed several innovative measures to meet its BTB target:
1. Technology and Data Analytics: The FBR has integrated cutting-edge data analytics and real-time monitoring dashboards to track and manage the progress of taxpayer registration. This approach ensures continuous oversight and facilitates prompt action on discrepancies.
2. Collaboration with NADRA: A key component of the FBR’s strategy is the collaboration with the National Database and Registration Authority (NADRA), aiming to establish machine-to-machine integration for real-time access to financial transaction data from major organizations.
3. Nudging Initiatives: In a bid to encourage compliance, the FBR has initiated a robust nudging campaign through SMS and WhatsApp messages targeted at high-profile unregistered individuals. This initiative, dubbed the REMIT Initiative, aims to urge non-filers to come forward and fulfill their tax obligations.
4. Public Awareness Campaigns: To raise awareness and educate the public on the importance of tax registration, the FBR has launched an extensive media campaign. The campaign promotes the Malomaat portal, encouraging citizens to use the platform to file their returns.
5. Data Sharing Partnerships: To streamline taxpayer identification, the FBR has signed Memorandums of Understanding (MOUs) with 28 departments and organizations, facilitating the transfer of critical data on a real-time basis.
6. Enhanced Tax Tools: The Maloomat portal has been revamped, and new tools like Tax Ray have been introduced to support field formations in their efforts to identify and register new taxpayers.
The FBR’s focused approach, combining technological innovations with strategic partnerships and targeted outreach, reflects a comprehensive effort to modernize Pakistan’s tax system and improve compliance rates. These steps are expected to significantly contribute to the government’s revenue generation efforts, bringing the country closer to its fiscal goals.
