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Broadening of tax base: FBR to collect data from five key areas

The prime minister has decided to review the performance of the FBR in the context of broadening and widening of tax base on monthly basis.

By Mehtab Haider
June 05, 2019

ISLAMABAD: On the directives of Prime Minister Imran Khan, the FBR has devised a plan for collection of data from five key areas for broadening of its narrowed tax base.

These five key areas included obtaining of data from banks with the help of State Bank of Pakistan, customers’ data from power distribution companies (DISCOs), owners/tenants living in houses of two kanals or more, owning luxury vehicles of 2400cc and above and frequent foreign travels.

The prime minister has decided to review the performance of the FBR in the context of broadening and widening of tax base on monthly basis.

“Yes, we have directed all Large Taxpayer Units (LTU) and Regional Taxpayer Offices (RTOs) to get the relevant info from five key areas for the purpose of broadening of tax base,” top official of FBR confirmed to The News here on Tuesday.

According to official communication sent out to all LTUs and RTOs across the country states that the Prime Minister of Pakistan has expressed his concern over narrowed taxation base, low tax to GDP ratio, systemic aberration in the taxation system and has desired that concerted efforts be put in to increase taxation base. In this regard and in addition to other measures are being pursued to be taken on priority for unearthing new taxpayers.

The FBR directed all Chief Commissioners of LTUs and RTOs to use source of State Bank of Pakistan for getting data of bank account holders above the threshold of Rs500,000 be examined with the assistance of SBP. The FBR directed its field formations to collect the data of all industrial and commercial power connections from DISCOs and meaningfully extrapolated to ensure filing of tax returns by all concerned.

The FBR has instructed its field offices to get assistance of Registration authorities, housing societies, DHAs and developing authorities for seeking information about all owners/tenants living in houses of two kanals or more.

The FBR has given instructions to its field offices for getting information from Motor Vehicle Registration authorities and car manufacturers and importers about all those persons owning luxury vehicles of 2400cc and above and scrutinized it objectively. They also asked the officers to keep close liaison with FIA and Nadra for getting information about frequent foreign travelers.

The existing baseline data of all five key areas/indicators along with the targets set by field formations for the tax year 2019-20 need to be shared by 11-06-2019 positively as directed the Prime Minster.