FBR establishes 145 district tax offices across country to broaden tax base

November 16, 2023 (MLN): As a part of restructuring measures, the Federal Board of Revenue (FBR) has established 145 district tax offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June 2024, as per a press release issued by the entity today.

The Prime Minister has stressed the importance of revenue and increasing the existing number of tax filers during recent meetings.

Accordingly, this new initiative will help broaden the tax base and ultimately raise the tax-to-GDP ratio to a desired level.

These offices would be headed by District Tax Officers entrusted with the responsibility of enforcing Income Tax Returns from non-filers and stop filers.

The establishment of these offices heralds a new chapter that would expand the tax net to fill a critical tax gap on the path to bring all potential taxpayers into the tax net.

These new offices would be headed by dedicated Inland Revenue Officers in BS-17/18.

These officers will obtain and utilize third party data acquired from multiple departments and agencies that hold critical information regarding investment in assets and incurring of huge expenditures by potential taxpayers.

This will restrict the escape routes for individuals evading the taxation system, particularly in terms of registration and filing tax returns.

One of the tools to be utilized for this purpose would be invoking recently introduced section 114B in the Income Tax Ordinance, 2001 which authorizes the department to disconnect utility connections including electricity and gas connections, and blocking of mobile sims, if return is not filed in response to notices issued.

The Federal Government is committed to utilize all measures and provide assistance to FBR.

A new Documentation Law is also being introduced to obligate various agencies/departments to provide data to the Federal Board of Revenue through an automated common transmission system.

Collaboration and assistance from the National Database and Registration Authority (NADRA) has also been sought.

Chairman NADRA has assured FBR for its assistance for widening of tax base through Data Integration.

The initiative would not only strengthen FBR capacity to enforce tax laws but will also facilitate taxpayers in filing tax returns by establishing dedicated offices.

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