ISLAMABAD: The Federal Board of Revenue (FBR) has said that a completely paperless environment for taxpayers is not possible due to the documentation requirements under the tax laws.
The FBR’s new report (Stakeholder Engagement Plan) on reforms revealed that one of the areas of reform is the automation of FBR processes. As per FBR team, in practical terms, a completely paperless system is not possible and documentation is also necessary.
The report said that concerning the case history of an individual or organisation, access to full documentation files, which are comprehensive and contain a detailed history, is important for processing cases and making informed decisions. The files are sometimes large and cover many years; hence this process of automation should be gradual to allow for complete files to be available electronically.
FBR finalises Stakeholder Engagement Plan
The taxpayers need to be taken on board and their issues and grievances addressed. Taxpayer outreach is a big issue. It is critical to sensitize people on the importance of paying taxes and develop a robust tax culture.
The FBR cannot work in isolation, and their work is contingent on cooperation and support from other agencies such as the Excise and Taxation Department, NADRA, CDA, etc.
There is a need to streamline the systems to engage in seamless data sharing (among different entities). In this regard, the enforcement, presence, and outreach are critical issues.
The FBR should follow through on policies and not change them frequently and be consistent about enforcement. One of the core issues businesses face pertains to the ease of doing business and tax automation. There should be a fast-track process- through an online system and less reliance on human resources.
In terms of filing taxes, the FBR needs its software and IT equipment. The exporters also mentioned issues that they have been facing with refunds.
There is a lingering issue about export refunds in the textile sector for instance as the Drawback of Local Taxes and Levies (DLTL), usually take a long time in addition to the refund for sales tax has to be strengthened, the report added.
Copyright Business Recorder, 2023