ISLAMABAD: The Federal Board of Revenue (FBR) lacks the capacity to analyse big data to detect tax evasion, according to the Annual Performance Report (2020-21) released by FBR.
The report revealed that the functional data bridges have been established with provincial revenue agencies and other state departments across the nation such as Banks/ NADRA/ SECP/ PITB/ AGPR/ SBP/ I-LINK/ TELCOS and Punjab Land Record.
Development of the ICT infrastructure and a well-resourced data analysis and research unit to integrate and analyse big data with adequate data security can pave the way for enhancing the capacity of the organisation.
The FBR said the domestic revenue mobilisation is the key to realising sustainable development and providing fiscal space to fund public expenditures. Current tax reforms aim at business development and investment-friendly environment through voluntary tax compliance and reduction in administrative and compliance costs for taxpayers, which will ultimately promote economic growth.
The FBR reforms have focused on the integration of third-party databases of NADRA, SBP, AGPR, and the provincial governments with FBR’s centralised databases and a single system for filing of sales tax returns for the federal and provincial taxes.
The FBR has been analysing various reform interventions such as simplification, technological access, facilitation and communication, automation of business processes, effective compliance controls and enforcement of taxpayer obligations and institutional development to increase efficiency and accountability.
The FBR is innovating to maximise the quality and efficiency of its services.
According to government policy of enhancing automation, the FBR is upgrading its digital services to make them increasingly available to all taxpayers and traders.
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