FBR introduces tools to simplify taxpaying procedures

KARACHI: The Federal Board of Revenue (FBR) has introduced several technology tools to simplify taxpaying procedures and minimise direct contact between taxpayers and collectors. 

The FBR launched Inland Revenue Information System (Iris) to make sales and income tax payment more convenient and Web-Based One Customs (WeBOC) system to facilitate trade.

Iris, a new web-based, integrated and end-to-end system is configurable. It was conceived, designed and implemented to replace 37 different systems.

The simplified income tax registration module, launched via Iris, is customisable that facilitates prospective from anywhere in the world at any time of the day.

The simplified sales tax registration module replaced the earlier system, which was not a risk-based and had a faulty verification mechanism. The new module facilitates manufacturers, retailers, importers, wholesalers, distributors and commercial exporters to get sales tax registration smoothly and quickly. The new income tax declaration module, which is a complete end-to-end solution for IRS, provides mechanism for online filing by taxpayer and field office to file manually received returns.

Withholding tax module is one of the most important modules of Iris whereby each transaction will be reported by the withholding agent as and when it occurs, eliminating any chance of wrong calculation or wrong exemption.

It facilitates withholding agents to prepare their bulk statements in offline mode in a prescribed excel sheet, which provides some basic data health validations.  It also provides single version of calculation considering time based standard rates, exemptions and active taxpayer list status.

IT exemption certificate and quota management module is a customisable and configurable system. Due to manual system of tax exemption, there was an evident problem in recording and reconciliation. Iris employs this module to address all these issues. 

Revenue module of Iris is developed to facilitate tax payment through alternate delivery channels, including internet banking, phone banking and auto teller machine.

WeBOC is an indigenously developed, web-based computerised clearance system, providing end to end automated customs clearance of import and export goods. The system was developed jointly by the Pakistan Customs and PRAL, and first implemented on trial basis at Port Muhammad Bin Qasim. Subsequently, WeBOC was further rolled out at other terminals and customs stations.

Presently, WeBOC has more than 45,000 registered users (businesses, government departments, including anti-narcotic force, Engineering Development Board, the State Bank of Pakistan, Ministry of Climate Change, Railways, Income Tax Department, Provincial Motor Registering Authorities, and banks).  Presently, 30 percent import consignments are cleared immediately through green channel without any intervention, 49 percent on the basis of uploaded documents (yellow channel) and 21 percent (red channel - deemed high-risk goods).  Importantly, the system has brought about uniformity in customs clearances across the country.

Its modules include goods declaration, warehousing and tools to handle break-bulk, commercial transit cargo for Afghanistan, manufacturing bonds, reverse transit and clearances from border customs stations.