The Federal Board of Revenue (FBR) has taken various measures to facilitate taxpayers in Pakistan during 2021-2022. These measures aim to create an enabling and accessible environment for taxpayers and to increase tax collection revenue. This article will discuss the measures taken by the FBR to support taxpayers, including the track and trace system, point of sales (POS), automated issuance of refunds, single sales tax portal/return, e-hearing, e-filing of appeal, and Tax Asaan, a mobile app designed to make tax compliance easier for taxpayers.
Track and Trace System:
The FBR has introduced a track and trace system for the tobacco, sugar, cement, beverage, fertilizers, and other sectors. The system aims to increase tax revenue, decrease fabrication, and prevent goods smuggling by implementing a national-level electronic control system and affixing tax stamps to various products at the production stage. This system allows the FBR to monitor the complete supply chain infrastructure of manufactured goods.
Point of Sales (POS):
The FBR has an integrated POS software system that digitizes economic transactions and caters to the growing needs of the digital economy. The POS system provides a computerized system for sales data recording, inventory management, and customer data maintenance. It is a real-time information and data processing system that connects tier-1 retailers with the FBR database through the internet. The system ensures that sales are reported in real-time to the FBR and are subject to monthly filing of sales tax returns.
Automated Issuance of Refunds:
To provide convenience to taxpayers, a centralized automatic reimbursement system has been introduced that does not require manual application and verification. The system issues refunds directly to taxpayers’ bank accounts without the need for face-to-face discussions with tax authorities. Steps have also been taken to activate the legal framework by enacting relevant provisions in tax laws.
Single Sales Tax Portal/Return:
The FBR has launched the One-Stop Sales Tax Portal, allowing taxpayers to file a monthly sales tax return instead of multiple returns on different portals. This significantly reduces compliance time and costs. The system automatically distributes tax payments to sales tax authorities along with the input tax adjustment, eliminating the need for payment reconciliation and transfer.
Online hearings have been designed to provide free tax administration, reduce compliance costs, and save taxpayers’ valuable time. The Income Tax Ordinance, 2001, 227E introduces acceptable statutory provisions for evidence taken in an online hearing.
E-Filing of Appeal:
An online appeals procedure is now available to taxpayers. Section 127 of the Income Tax Ordinance 2001 has been introduced to allow for this process.
Tax Asaan is a mobile app that offers various facilities for taxpayers, including recording income tax and sales tax, filing tax returns, and verifying POS bills. This app is available for free on Android and iOS smartphones and is designed to make tax compliance easier for taxpayers.
The FBR has taken several measures to facilitate taxpayers in Pakistan during 2021-2022. These measures aim to create an enabling and accessible environment for taxpayers and to increase tax collection revenue. The track and trace system, POS, automated issuance of refunds, single sales tax portal/return, e-hearing, e-filing of appeal, and Tax Asaan mobile app are some of the measures taken by the FBR to support taxpayers. These measures will not only facilitate taxpayers but also help to strengthen the tax collection system in Pakistan.