The Federal Board of Revenue (FBR) has introduced real-time machine-to-machine data integration with the National Database and Registration Authority (NADRA), as well as other key organizations holding financial transaction data. This development aims to enhance tax compliance and broaden the tax base.
In its 2023-24 tax base expansion report, the FBR highlighted its adoption of advanced technology and data analytics, complemented by continuous monitoring via dashboards. A proactive outreach campaign has been launched, including SMS and WhatsApp nudges targeting high-profile individuals who remain unregistered taxpayers.
The FBR is also encouraging citizens to utilize the Management Information System(MIS) portal for filing tax returns, supported by a media campaign to raise awareness. Further enhancing its data-sharing capabilities, the FBR has formalized agreements with 28 departments and organizations for real-time data transfers.
Field operations have been bolstered through the establishment of 145 District Tax Offices (DTOs), each assigned jurisdiction to address non-filers and expand the taxpayer base. Additionally, the Tax Ray system has been improved to assist field officers in identifying potential taxpayers.
A special committee, chaired by NADRA’s chairman and comprising senior officials from both organizations, has been instrumental in developing actionable recommendations to increase taxpayer registration. These measures have already been implemented, including innovative enforcement strategies.
One such measure involves directing telecommunications companies (TELCOs) to temporarily deactivate the SIM cards of non-filers under Section 114B of the Income Tax Ordinance, 2001, as a means to incentivize compliance.
The FBR’s efforts culminated in a record-breaking achievement in the 2023 tax year, registering 3.6 million new taxpayers. Of these, 1,780,406 have already filed their tax returns, reflecting significant progress toward broadening the tax net.
