ISLAMABAD: In a significant move aimed at enhancing tax compliance and broadening the tax base, the Federal Board of Revenue (FBR) has established 145 District Tax Offices across the country. This strategic initiative, part of a broader restructuring effort, is designed to incorporate 1.5 to 2 million new taxpayers into the tax net by June 2024.
The formal notification of the establishment of these offices marks a pivotal development in the FBR’s mission to elevate the tax-to-GDP ratio to targeted levels. Each District Tax Office will be led by a District Tax Officer, responsible for compelling Income Tax Returns from non-filers and preventing lapses from existing filers.
This visionary step represents a crucial chapter in the effort to bridge existing tax gaps and integrate all potential taxpayers into the taxation system. Headed by dedicated Inland Revenue Officers in BS-17/18, these new offices will leverage third-party data from various departments and agencies, acquiring critical information about potential taxpayers’ investments and significant expenditures.
FBR Implements Section 114B for Enhanced Tax Compliance
This approach aims to bring those who have previously evaded the tax system into compliance, including the registration and filing of tax returns.
The implementation of recently introduced Section 114B in the Income Tax Ordinance, 2001, is set to be a key tool in this process. This section empowers the department to take action, such as disconnecting utility services and blocking mobile SIMs, if taxpayers do not respond to issued notices.
The commitment of the Federal Government to support the FBR is underscored by the introduction of a new Documentation Law, compelling agencies and departments to provide data to the FBR through an automated common transmission system. Collaboration and assistance from the National Database and Registration Authority (NADRA) have also been secured, with Chairman NADRA assuring support for widening the tax base through data integration.