In a progressive move towards acknowledging and rewarding responsible taxpayers, the Federal Board of Revenue (FBR) has introduced the concept of a taxpayer honor card through an amendment to the Income Tax Ordinance, 2001.
Section 181B, updated up to June 30, 2021, now empowers the FBR to create a scheme for the issuance of a taxpayer honor card, specifically designed for individual taxpayers who meet certain criteria. This innovative initiative aims to incentivize tax compliance and recognize the contributions of responsible taxpayers to the nation’s revenue.
The revised Section 181B reads: “Taxpayer card.— Subject to this Ordinance, the Board may make a scheme for the introduction of a tax-payer honor card for individual taxpayers, who fulfill a minimum criteria to be eligible for the benefits as contained in the scheme.”
The introduction of the taxpayer honor card is a groundbreaking step in promoting a culture of tax compliance and recognizing the positive contributions of individual taxpayers. The scheme, yet to be detailed by the FBR, is expected to outline specific criteria that taxpayers must meet to be eligible for the honor card.
The taxpayer honor card is envisioned as a tangible recognition of an individual’s commitment to fulfilling their tax obligations responsibly. It is not only a testament to compliance with tax laws but also a symbol of the taxpayer’s contribution to the economic well-being of the country.
This initiative aligns with global efforts to foster voluntary tax compliance by introducing positive reinforcement mechanisms. Many countries recognize the importance of appreciating taxpayers who go above and beyond in fulfilling their civic duty of contributing to the national exchequer.
While the detailed scheme for the taxpayer honor card is yet to be unveiled by the FBR, it is anticipated that eligible individuals will enjoy certain benefits or privileges outlined in the scheme. These may include preferential treatment, expedited services, or other incentives designed to encourage and reward responsible tax behavior.
Industry experts have praised this move, emphasizing the potential impact of positive reinforcement on tax compliance. The taxpayer honor card is seen as a motivational tool that not only recognizes individual efforts but also promotes a sense of pride and responsibility among taxpayers.
The introduction of Section 181B to the Income Tax Ordinance, 2001, empowering the FBR to issue a taxpayer honor card, represents a forward-thinking approach to tax administration. This innovative initiative is poised to encourage tax compliance, instill a sense of responsibility among individual taxpayers, and contribute to building a more cooperative and engaged relationship between taxpayers and tax authorities in Pakistan.
