FBR unveils plan to add 2 million new taxpayers by 2024

WEB DESK: In a strategic move to streamline its operations, the Federal Board of Revenue (FBR) has set up 145 district tax offices.

These offices have a targeted mission to incorporate 1.5 to 2 million new taxpayers into the system by June 2024, according to an official press release.

The Prime Minister, in recent meetings, underscored the significance of revenue generation and highlighted the need to augment the current number of tax filers.

The FBR’s response to this directive involves the creation of these district tax offices, each led by a district tax officer responsible for compelling income tax returns from non-filers and preventing existing filers from defaulting.

This proactive initiative is envisioned to expand the tax base, ultimately elevating the tax-to-GDP ratio to the desired level. The newly established offices will be under the supervision of dedicated Inland Revenue Officers in BS-17/18.

These officers will leverage third-party data obtained from various departments and agencies, holding vital information on investments and substantial expenditures by potential taxpayers.

The aim is to curtail evasion and enhance compliance with the taxation system, particularly in terms of registration and filing tax returns.

To enforce this, the recently introduced Section 114B in the Income Tax Ordinance, 2001, will be invoked.

This section empowers the department to disconnect utility connections, such as electricity and gas, and block mobile SIMs if the taxpayer fails to respond to issued notices by not filing returns.

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The Federal Government is fully committed to supporting the FBR in implementing these measures.

Additionally, a new documentation law is in the works, compelling various agencies and departments to provide data to the FBR through an automated common transmission system.

In this collaborative effort, assistance from the National Database and Registration Authority (NADRA) has been sought.

The Chairman of NADRA has assured support for widening the tax base through data integration.

This comprehensive initiative aims not only to strengthen the FBR’s capacity to enforce tax laws but also to facilitate taxpayers in filing of their returns by establishing dedicated offices.