As part of restructuring measures in the Federal Board of Revenue (FBR), the finance minister has approved the establishment of 145 District Tax Offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June 2024.
The caretaker prime minister also stressed the importance of revenue and increasing the existing number of tax filers during recent meetings.
FBR notified the offices of 145 District Tax Officers today, a new establishment that will help broaden the tax base and ultimately raise 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 would expand the tax net to fill a critical tax gap on the path to bringing all potential taxpayers into the tax net.
These new offices would be headed by dedicated Inland Revenue Officers in BS-17/18 which 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 stay 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 blocking of mobile sims if return is not filed in response to notices issued.
The federal government is committed to utilizing all measures and providing assistance to FBR. A new Documentation Law is also being introduced to obligate various agencies/departments to provide data to the FBR through an automated common transmission system.
Collaboration and assistance from the National Database and Registration Authority (NADRA) have also been sought. Chairman NADRA has assured the FBR of its assistance for the widening of the 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.
