ByWhile the Pakistan Revenue Automation Limited (PRAL) has developed the robust online tools used by the FBR, the same infrastructure and expertise have not been effectively extended to the AJK Inland Revenue Department (AJKIRD). This inexplicable delay is a glaring example of administrative neglect and raises concerns about prioritization. Why, with the readily available resources, can’t AJK benefit from the same digital advancements as the rest of Pakistan?
Recently, the AJKIRD has made some limited attempts to upgrade its e-payment system, introducing a few online features. Taxpayers can now pay:
- Admitted Income Tax: Tax voluntarily paid by taxpayers.
- Advance Income Tax: Tax paid in installments throughout the year against the estimated final tax liability.
- Miscellaneous Income Tax: A catch-all category for payments like penalties and surcharges.
- Demanded Income Tax: Tax assessed and demanded by the tax authority following audits or assessments.
- Education Cess: A tax dedicated to funding educational initiatives.
- Professional Tax: A tax levied on practicing professionals.
- Sales Tax:Payment of sales tax.
- Federal Excise Duty (FED):Payment of Federal Excise Duty.
While these additions represent a step forward, the AJK tax system remains significantly underdeveloped compared to the FBR’s system. Crucially, several key tax payments remain offline, forcing taxpayers to physically visit tax offices. These include:
- Withholding Taxes: Taxes deducted at source on various transactions.
- Sales Tax Withholding: Payments of sales taxes withheld at source
- Capital Value Tax (CVT): A tax on certain assets.
- Tax on Immovable Property: Property tax.
This forced reliance on physical visits creates numerous inefficiencies. It wastes taxpayers’ time and resources, increases the potential for errors and corruption, and hinders efficient revenue collection. It also disproportionately affects taxpayers in remote areas with limited access to tax offices.
The government has a fundamental responsibility to ensure efficient revenue collection across all regions. The current state of AJK’s tax system demonstrates a clear failure to fulfill this obligation. The lack of digitalization not only inconveniences taxpayers but also undermines the potential for increased revenue generation. A fully integrated and digitized tax system across Pakistan, including AJK, is essential for transparency, accountability, and economic growth.
The continued disparity between the FBR’s advanced e-payment system and the AJKIRD’s limited online capabilities is unacceptable. The government must prioritize the full digitalization of AJK’s tax system, leveraging the existing infrastructure and expertise available through PRAL. This would not only bring AJK in line with the rest of the country but also contribute to a more efficient and equitable tax system for all. The current situation is a critical failure of governance and a clear indication of the government’s lack of commitment to digital equity and efficient public service delivery in AJK.
