The Federal Board of Revenue (FBR) and the National Database and Registration Authority (Nadra) have agreed to work together to expand the tax base and automate the FBR. This collaboration will involve sharing data to determine the actual income of existing taxpayers, register new taxpayers, and finalize tax profiles of non-filers.
The FBR is also restructuring and revitalizing its Pakistan Revenue Automation Limited (PRAL) division to make it a more efficient and effective organization that can support the FBR’s digitization and automation efforts. This will involve getting rid of redundant employees and increasing the technical expertise of the division.
What does this mean for taxpayers?
This collaboration between the FBR and Nadra is a positive step towards expanding the tax base and automating the FBR. For taxpayers, this means that they can expect more accurate tax assessments and a more efficient tax filing process.
Here are some of the key benefits of this collaboration:
- More accurate tax assessments: By sharing data, the FBR will be able to get a more accurate picture of the income of existing taxpayers. This will help to ensure that taxpayers are paying the correct amount of tax.
- More efficient tax filing process: The automation of the FBR will make the tax filing process more efficient for taxpayers. This means that taxpayers will be able to file their taxes more quickly and easily.
- Reduced tax evasion: The collaboration between the FBR and Nadra will make it more difficult for taxpayers to evade taxes. This is because the FBR will have access to more data about taxpayers, which will make it easier to identify and track down tax evaders.
Overall, this collaboration between the FBR and Nadra is a positive development for both taxpayers and the Pakistani government. It is a step towards a more efficient and equitable tax system.