NADRA data fails to support broadening of tax base: FBR

ISLAMABAD: Tax Reform Implementation Commission (TRIC), after discussions last week, concluded that NADRA’s data was not useful for broadening the tax base, officials said on Monday.

The government had constituted a Tax Reform Commission (TRC) but its recommendations were not implemented. Later, the government constituted Tax Reform Implementation Commission (TRIC) comprising both private members and the Federal Board of Revenue (FBR) team to evolve consensus on points that could be implemented to reform the taxation system of the country.

“The TRIC held its meeting last week, which came to the conclusion that broadening the tax base was the dire need of the hour, but NADRA’s data could not help the FBR for achieving the desired objectives,” official sources confirmed to The News. The officials said that NADRA and the FBR had struck a deal for sharing data, but NADRA could only provide the CNIC confirmation.

They said if NADRA data showed that around 1,500 people lived in the most expensive area of Islamabad, that data could not verify the economic status of each individual. The TIRC dwelt upon some of the short-term measures for broadening the tax base, such as proper valuation of immovable properties, simplification of laws, structural ethics and Grievance Redressal System both at chief commissioner/collector level and FBR (HQs), as well as use of mufassil units. 

Other short-term recommendations of the Tax Reform Implementation Commission were improvement in IT system/automation to reduce the cost of compliance and emphasis on liaison with NAB to implement recommendations against corruption.

Regarding placing track and trace system for checking cigarettes manufacturers’, a private member of TIRC expressed concern over the slow pace of implementation. It was decided that now the Tax Reform Implementation Commission would be given monthly progress on this project.

At present the pace of the implementation of reforms is very slow and it should be expedited. The FBR’s failure to expedite the implementation of the commission’s suggestions could have problems in the reforms process.

It was decided to convene TRIC meeting on monthly basis to ensure speedy implementation. The government had implemented some short recommendations of the TRC in Finance Bill 2016.

Meanwhile, a UK delegation led by minister of state for trade and investment Rt Hon Greg Hands visited FBR House on Monday and met with special assistant to Prime Minister on Revenue Senator Haroon Akhtar Khan.

FBR chairman Tariq Mahmood Pasha and official spokesperson Dr Muhammad Iqbal were also present on the occasion. Tom Drew, British High Commissioner to Pakistan and Joanna Reid, Head of DFID Pakistan, were among other British officials who assisted the visiting UK minister in the talks which focused on a range of issues related to ongoing bilateral cooperation between the tax authorities of both countries. Both the sides agreed to work together and share information and experiences to boost tax reforms and economic development in Pakistan.