ISLAMABAD: Auditor General of Pakistan has highlighted that the Federal Board of Revenue has not fully utilised the extensive datasets available on the Malomaat Portal of IRIS, resulting in a significant number of high-net worth individuals filing nil returns with zero payment of their actual tax liability. The report on Inland Revenue and Customs (2024-25) observed that despite access to comprehensive information, the tax authority’s field formations have not optimally deployed this data to enhance revenue mobilisation or ensure effective compliance among potential taxpayers.
According to the AGP’s findings, the Malomaat Portal contains valuable data such as industrial electricity connections, records of foreign travel and ownership of vehicles exceeding 1500cc. This breadth of information identifies potential taxpayers with considerable income profiles, yet the anticipated revenue potential is not being realised as these individuals continue to file nil returns. The report notes that by failing to enforce proper utilisation of the portal’s data, FBR has allowed many financially capable individuals to avoid paying their fair share of taxes, undermining efforts to expand the tax net.
The report further recommended that FBR and its field formations make compulsory use of available datasets to register potential taxpayers, including data from industrial electricity and gas consumers, vehicle registration records and foreign travel histories. It also called for granting auditors access to relevant data portals under mutually agreed data sharing protocols. This approach, according to the AGP, would significantly strengthen the tax authority’s ability to identify non-compliant individuals, prevent leakage of revenue and improve transparency within the tax system.
To address the gaps identified, AGP has urged FBR to enhance its internal control environment and improve coordination with other institutions such as NADRA, motor vehicle registration authorities, property registration offices and other withholding agents. These partnerships, supported by legal proceedings where necessary, could help ensure timely enrolment of new taxpayers and greater compliance among existing ones. FBR had established its Broadening of Tax Base wing in 2013 to bring new taxpayers onto the rolls and facilitate filing of returns. The wing was also tasked with liaising with organisations holding large datasets on financial transactions. However, the AGP’s report indicates that the full potential of this mechanism has yet to be realised, and stresses the need for FBR to operationalise these resources more effectively to broaden the tax base and strengthen revenue collection.
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