The income tax department has started testing of computer program 'Nexus', for removing errors in the system, which would be used for searching the new taxpayers in current financial year.
Following failure of the previous system, called 'National Integrated Tax Information Trekker', containing survey information, the CBR appears to be taking extra precautionary measures to check the accuracy of the new system.
During the tenure of CBR Chairman Riaz Ahmed Malik, it was claimed that the 'Trekker' was the most effective tool to search for the new taxpayers. But the system failed due to defective database. 'Trekker' was neither updated nor used for discovering new taxpayers. Now, another attempt to broaden the tax base has been made in the form of 'Nexus'. It is apprehended that if the system again failed then it would be impossible for the CBR to raise the tax-GDP ratio through broadening the tax base.
The CBR has termed 'Nexus' as a major tool for bringing prospective taxpayers within the tax net, using data from various sources, including cars manufacturers, utility bills and Securities and Exchange Commission of Pakistan (SECP).
Official sources told Business Recorder on Monday that the text and bug-fixing of the system was in progress and data problems had been rectified with the help of income tax officials.
The CBR has updated the data of mobile phone subscribers, owners of motor vehicles, travellers to foreign countries, and industrial consumers of electricity and natural gas.
It also contains the data of NTN holders, income tax challans, STARR refund data, and customs data. 'Nexus' also contains data of electricity consumers of Lahore and Karachi, travellers abroad, survey data, mobile phone companies, motor vehicles data of Karachi and Lahore, gas consumers of SSGC and SNGPL.