FBR to set up 145 District Tax Offices. This initiative aims to bring an estimated 1.5 to 2 million new taxpayers into the tax net by June 2024.
The caretaker prime minister has emphasized the critical importance of revenue generation and increasing the number of tax filers in recent high-level meetings. To operationalize this vision, the FBR has officially notified the creation of 145 District Tax Officers, each tasked with spearheading efforts to enforce Income Tax Returns from non-filers and stop filers.
FBR to Set Up 145 District Tax Offices Initiative
The establishment of these District Tax Offices is a pivotal step in broadening the tax base, ultimately contributing to the government’s goal of raising the tax-to-GDP ratio to the desired level. These offices, led by dedicated Inland Revenue Officers in BS-17/18, will be crucial in acquiring and utilizing third-party data from various departments and agencies.
This data will contain vital information regarding investments in assets and significant expenditures by potential taxpayers who have thus far evaded the taxation system.
To enforce compliance, the FBR plans to utilize recently introduced Section 114B in the Income Tax Ordinance, 2001. This section empowers the department to take stringent measures, including disconnecting utility connections (electricity and gas) and blocking mobile SIMs if individuals fail to file tax returns in response to issued notices.
In alignment with these efforts, the federal government is committed to providing comprehensive support to the FBR. A new Documentation Law is in the works to mandate various agencies and departments to furnish data to the FBR through an automated common transmission system.
Collaboration with the National Database and Registration Authority (NADRA) is also integral to the initiative. The Chairman of NADRA has pledged assistance to the FBR in widening the tax base through data integration.
This ambitious initiative not only strengthens the FBR’s capacity to enforce tax laws but also aims to facilitate taxpayers by establishing dedicated District Tax Offices. The move signifies a concerted effort to enhance tax compliance, streamline procedures, and ensure a more robust and inclusive taxation system for the benefit of the national economy.