ISLAMABAD In a major restructuring effort, the Federal Board of Revenue (FBR) has established 145 District Tax Offices across the country to bring 1.5 to 2 million new taxpayers into the tax net by June 2024. This initiative is aimed at broadening the tax base and ultimately raising the tax-to-GDP ratio to a desired level.
The FBR, acting upon the directions of the Prime Minister regarding to increase the existing number of tax filers, has notified the establishment of these offices, a new initiative that will help in broadening the tax base and ultimately raising the tax-to-GDP ratio to a desired level. These offices would be headed by District Tax Officers entrusted with the responsibility of enforcing Income Tax Returns from non-filers and stop-filers.
The establishment of these offices heralds a new chapter that would expand the tax net to fill a critical tax gap on the path to bringing all potential taxpayers into the tax net, the statement said.
These new offices would be headed by dedicated Inland
Revenue Officers in BS-17/18 who would obtain and utilize third-party data acquired from multiple departments and agencies that hold critical information regarding investment in assets and incurring of huge expenditures by potential taxpayers who till now have managed to escape and stayed away from the taxation system including registration and filing of tax returns.
One of the tools to be utilized for this purpose would be invoking recently introduced section 114B in the Income Tax Ordinance, 2001 which authorizes the department to disconnect utility connections including electricity and gas connections and block mobile SIMS if a return is not filed in response to notices issued.
The federal government is committed to utilising all measures and providing assistance to FBR, it added.
A new Documentation Law is also being introduced to obligate various agencies/departments to provide data to the Federal Board of Revenue through an automated common transmission system.
Collaboration and assistance from the
National Database and Registration Authority (NADRA) has also been sought. Chairman NADRA has assured the Federal Board of Revenue of its assistance in widening of tax base through Data Integration.
The initiative would not only strengthen FBR’s capacity to enforce tax laws but will also facilitate taxpayers in filing tax returns by establishing dedicated offices, the statement added.