Online Sales Tax Registration in AJK – Still a Distant Dream

The Gap Between Promise and Practice:

• No Online Registration Form: Despite the availability of online resources, taxpayers in AJK cannot actually apply for sales tax registration online.
• Deregistration Available, Registration Not: Ironically, the system allows for online applications for deregistration of sales tax, highlighting a significant discrepancy.
• Offline Dominance: The process of sales tax registration in AJK primarily remains offline, requiring taxpayers to visit the tax office in person.^Â

Challenges in Digitalization:

• PRAL’s Shortcomings: The Pakistan Revenue Automation Limited (PRAL), the authority responsible for modernizing and digitizing tax administration, has seemingly failed to effectively integrate the AJK system with online platforms.
• IRIS 2.0 Lag: While FBR has recently launched IRIS 2.0, a modernized tax filing system, the AJK Integrated Revenue Information System (AJK-IRIS) continues to operate on an older version, creating usability issues for taxpayers.

Impact on Taxpayers:

The lack of online sales tax registration in AJK poses several challenges for taxpayers:

• Time-consuming Process: Visiting the tax office for registration can be time-consuming and inconvenient for businesses.
• Potential for Delays and Errors: Manual processes increase the risk of delays and errors in registration.
• Limited Accessibility: Rural areas and remote locations may have limited access to physical tax offices, further hindering registration efforts.

The current state of online sales tax registration in AJK falls short of expectations. While the government emphasizes digitalization, the practical implementation lags behind. Streamlining the registration process through online platforms is crucial for improving taxpayer convenience, reducing administrative burden, and enhancing transparency in the tax system.