National Database and Registration Authority (NADRA) has accelerated data-sharing with the Federal Board of Revenue (FBR), leading to a significant increase in the number of tax filers.
The federal government has set an ambitious target of raising the tax-to-GDP ratio to 13.7 percent under the ongoing International Monetary Fund (IMF) program. To achieve this goal, the FBR is actively working to improve data sharing with provincial revenue authorities. This collaboration will enable the FBR to track taxpayers’ expenses more effectively, including property ownership, bank balances, and foreign travel.
The government plans to align taxes on agricultural income with existing income and corporate tax structures. To facilitate this process, a high-level technical committee has been formed, comprising officials from NADRA and the FBR.
The committee, led by NADRA Chairman Lt. Gen. Muhammad Munir, aims to develop a comprehensive plan to register new taxpayers. Senior FBR officials, including the CEO of Pakistan Revenue Automation Limited and two senior officers, are also part of the committee. The focus is on examining the actual income of taxpayers to enhance the efficiency of the tax system.
To further streamline data sharing, the FBR will be linked to the State Bank of Pakistan and commercial banks. This collaboration will enable the FBR to access relevant financial data and improve its ability to identify potential tax evaders.
The partnership between NADRA and the FBR is a crucial step towards improving the tax system in Pakistan. By enhancing data sharing and analysis, the government aims to broaden the tax base and increase tax revenue, ultimately contributing to the country’s economic development.
