Federal Board of Revenue (FBR) has inaugurated 145 District Tax Offices, aiming to bring 1.5 to 2 million new taxpayers into the system by June 2024. The Prime Minister has emphasized the importance of revenue generation and the need to increase the number of tax filers in recent meetings.
The establishment of these offices, as announced today by the Federal Board of Revenue, marks a pioneering initiative focused on broadening the tax base and ultimately elevating the tax-to-GDP ratio to the desired level. Each office will be led by District Tax Officers with the mandate to enforce Income Tax Returns from non-filers and stop filers.
This development signifies a crucial turning point, working towards closing the tax gap and incorporating all potential taxpayers into the system. The newly established offices, headed by dedicated Inland Revenue Officers in BS-17/18, will leverage third-party data obtained from various departments and agencies to identify individuals who have thus far evaded the taxation system, including the registration and filing of tax returns.
An essential tool in this endeavor will be the implementation of the recently introduced section 114B in the Income Tax Ordinance, 2001. This provision empowers the department to take measures such as disconnecting utility connections (electricity and gas) and blocking mobile SIMs if individuals fail to file returns in response to issued notices.
The Federal Government is fully committed to supporting the FBR in implementing these measures. A new Documentation Law is also in the works, obligating various agencies and 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 been sought, with the Chairman of NADRA assuring support for widening the tax base through data integration.
This strategic initiative not only enhances the FBR’s capacity to enforce tax laws but also facilitates taxpayers by establishing dedicated offices, making the process of filing tax returns more accessible and streamlined.
