Karachi, November 29, 2023 – In a concerted effort to expand the national tax base, tax authorities in Pakistan, led by the Federal Board of Revenue (FBR), have implemented a series of measures aimed at identifying and registering new taxpayers.
The FBR, in its yearbook for fiscal year 2022-2023, highlighted the various strategies and actions taken to contribute to the overarching goal of broadening the tax base.
1. Annex-C of Sales Tax Returns: The Annex-C of Sales Tax Returns of specific National and Multinational manufacturers/importers is being leveraged for Business to Business (BTB) purposes, providing comprehensive data on unregistered buyers.
2. E-Stamp Data Utilization: The FBR has obtained data from e-stamps, which is shared with field formations to facilitate the BTB purpose, aiding in the registration of potential sellers and buyers.
3. Sugar Mills Sales Tax Returns: Data from unregistered buyers of sugars extracted from Annex-C of Sales Tax Returns of sugar mills has been forwarded to respective Regional Tax Offices (RTOs) for the registration of new taxpayers.
4. Tax Deduction Information: Information regarding tax deducted under sections 236G and 236H by manufacturers from their distributors and by distributors from their retailers has been retrieved. Dealers and retailers identified as unregistered are being registered by their respective RTOs to broaden the tax base.
5. Distribution Companies Data: Information from various distribution companies, including gas and electricity providers, regarding unregistered commercial/industrial consumers is being utilized for the purpose of Broadening of Tax Base (BTB).
6. Memorandums of Understanding (MOUs): MOUs have been signed with various departments, including NADRA, FIA, PITB, SCBA, and banks, to obtain data for scrutiny, matching with existing FBR data, and the exploration of potential new taxpayers.
7. FBR Website Interface Enhancement: The FBR website interface is continuously improved to enhance customer-friendliness, provide facilities for both existing and new taxpayers, and contribute significantly to the overall BTB target.
8. “Malomaat” Tab on FBR Website: Information gathered from various sources is processed and made available to taxpayers under a newly added tab, “Malomaat,” on the FBR website. This portal allows individuals to see their expenditures, including property and vehicle purchases, bank deposits, salary payments, and more, ensuring maximum enrollment of new taxpayers.
9. Withholding Statements Monitoring: Withholding statements submitted periodically by different taxpayers and withholding agents regarding tax deductions are under the permanent watch of the Directorate General of BTB for the identification of potential new taxpayers.
These comprehensive measures underscore the commitment of Pakistani tax authorities to enhancing compliance, fostering transparency, and encouraging the enrollment of new taxpayers. The multifaceted approach, utilizing data from various sectors and collaborations with different entities, reflects a strategic initiative to strengthen the country’s revenue generation and promote a culture of tax responsibility among businesses and individuals.
As these efforts unfold, the impact on the tax landscape and the overall fiscal health of the nation will be closely monitored by stakeholders and experts alike.
