ByThe Federal Board of Revenue (FBR) has obtained comprehensive data on car purchases and ownership transfers made over the past five years as part of a targeted campaign to identify individuals evading their tax obligations. This initiative, launched on January 19, 2025, highlights the FBR’s intensified efforts to use technology and inter-agency collaboration to expand Pakistan’s tax net.
The excise and taxation departments of all four provinces have shared detailed records of vehicle registrations and ownership transfers during this period. This data specifically focuses on individuals not listed on the Active Taxpayers List (ATL) but who have registered or transferred vehicles in their names. Reliable sources within the FBR have confirmed that the acquired information is already being used to issue notices to non-compliant individuals, requiring them to justify their sources of income and fulfill tax filing obligations.
As stipulated under the Income Tax Ordinance, manufacturers, motor vehicle dealers, registration authorities, banks, and leasing companies are mandated to submit monthly statements to the FBR. These statements must detail critical information, including the buyer’s name, address, National Tax Number (NTN) or Computerized National Identity Card (CNIC), car registration number, make and model, engine capacity, year of manufacture, and the date of the vehicle’s first registration. The FBR has consolidated this data to pinpoint individuals with substantial financial capacity who remain outside the formal tax system.
The notices issued by the FBR aim to ensure compliance with tax laws by compelling non-filers to explain their financial activities and register as taxpayers. This move is expected to significantly reduce the tax gap and enhance revenue collection, addressing one of the country’s chronic fiscal challenges.
FBR officials have emphasized that this initiative is a crucial part of a broader strategy to leverage technology and data analytics in identifying potential taxpayers. The collaboration with provincial excise departments has proven instrumental in obtaining accurate and actionable data. These efforts are aligned with the FBR’s overarching goal of broadening the tax base and fostering a culture of voluntary compliance.
The initiative to scrutinize vehicle ownership data underscores the FBR’s focus on integrating financial and registration records to target tax evasion. By holding individuals accountable for their financial activities, the FBR not only seeks to promote transparency but also to encourage citizens to contribute to Pakistan’s fiscal stability. This approach is expected to set a precedent for utilizing inter-agency data-sharing to address tax evasion across various sectors.
In the coming months, the FBR is likely to intensify these efforts, expanding its scope to include other high-value asset transactions. Such measures are pivotal for achieving sustainable economic growth by ensuring that all eligible taxpayers contribute their fair share to the national exchequer.
