The Federal Board of Revenue (FBR) is intensifying efforts to expand Pakistan’s tax net by implementing stringent measures aimed at increasing taxpayer participation.
With a targeted objective of bringing in 1.5 to 2 million new taxpayers into the system by June 2024, the FBR has established 145 district tax offices across the nation.
To accomplish this goal, the FBR is tapping into third-party data sources to gather information about taxpayers. This data will be utilized to identify non-filers, prompting decisions to disconnect electricity and gas meters of those not complying with tax obligations, and even block mobile SIM cards.
Highlighting the importance of cooperation from various institutions and departments, the FBR emphasizes the need for these entities to provide data through an automatic transmission system. This concerted effort is envisioned to significantly expand the tax base in Pakistan.
The FBR has set an ambitious objective to elevate the tax-to-GDP ratio to the desired level, a crucial metric for the country's economic framework. Despite having approximately 2.2 million taxpayers, the number of filers falls substantially short of this figure.
Recognizing the significance of tax compliance, especially amidst extensions granted for filing tax returns, the FBR has extended the deadline for submission of income tax returns to December 31. This extension aims to provide taxpayers with ample time to fulfill their obligations and contribute to the country’s financial system.
