Identification of non-filers, under-filers: Protocols being finalised to integrate data with Nadra: FBR

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Dr Muhammad Ashfaq Ahmed Wednesday said the Board is still in the process of finalizing protocols to integrate data between the National Database and Registration Authority (Nadra) and the FBR with the objective of identifying non-filers and under-filers.

He was talking to a group of reporters after launching the Inland Revenue Strategic Reform Plan for 2021-25 in collaboration with UK-Aid, the ADB and other donors, here on Wednesday.

The FBR has yet to implement two major initiatives for broadening the tax base including integrating data with the NADRA and second arresting potential tax dodgers despite getting powers through the Finance Act, 2021.

He also informed that the FBR could not move ahead for arresting any one which was obtained through law in the last budget. He said that the field offices took such steps and in the law of the land such provision existed. However, he admitted that this newly-inducted provision for arresting any potential tax dodgers and tax evaders with the approval of the finance minister and the chairman FBR could not be implemented so far.

The launching ceremony was chaired by Chairman FBR Dr Muhammad Ashfaq Ahmed. The event was also attended by key officials of international donors including the World Bank, FCDO, the IMF, the Asian Development Bank, and senior leadership of the FBR.

The UK’s High Commission representative, Mahesh Mishra, said on the occasion that the UK government provided technical and financial assistance to help government to collect additional taxes. He said that the taxation is key as additional one percent tax collection in percentage of the GDP materialized three billion pounds which could be utilized to construct more school, universities and health centers.

FBR yet to implement some major reforms

He said that taxation also helped for re-distribution and overcoming increasing inequality.

The FBR chairman said that the IR Strategic Reform Plan 2021-25 encapsulated the FBR’s vision for the future. The country’s premier revenue collection organisation aspires towards building a stronger and more modern institution, driven by the principles of integrity, efficiency and effective service delivery, he added.

He reiterated that the plan envisaged the transformation of Inland Revenue into a world-class, technologically-savvy and taxpayer-centric service. He thanked all the development partners for their much-needed support in developing this valued document and assured them of his fullest cooperation in implementing the same.

The Inland Revenue Strategic Reform Plan clearly sets the reform agenda for the four-year period from 2021-22 through to 2024-25.

The plan provides reform actions to improve tax administration in the 4 strategic reform areas which include improving tax compliance, strengthening tax administration, building institutional capacity, and reinforcing legislative framework.

Furthermore, the Inland Revenue plans to address the challenge of low tax compliance through implementing a compliance risk management capability; improving registration, filing, payment and reporting compliance; reducing the cost of compliance, strengthening the audit capability, streamlining processes, and procedures.

Needless to add that greater use of automation for better service delivery and data-centric approach is a key reform area. Leveraging existing data holdings and developing further data sources will allow the FBR to better identify compliance risks and allow the FBR to direct our resources to areas of highest risk.

Inland Revenue also endeavours to improve the skill set of its work force and simplify and standardise the IR procedures by providing a common tax code. The IR Strategic Plan will be reviewed on an annual basis to ensure the programme is still a sustainable and viable reforms strategy.

The envisaged reforms have the potential to structurally improve the performance of the tax system and make significant contribution to revenue mobilisation.

Copyright Business Recorder, 2022