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FBR targets elite class with NADRA data to expand tax net

FBR targets elite class with NADRA data to expand tax net

Web Desk
Oct 26, 2024

ISLAMABAD: The Federal Board of Revenue (FBR) has finally started receiving details from the National Database and Registration Authority (NADRA) of ‘rich Pakistanis’ to expand the tax base.

According to Business Recorder, NADRA has reportedly shared data including details of bank accounts, property ownership, and luxury vehicle registrations, for 195,000 wealthy individuals identified as part of the elite class.

The FBR and NADRA collaboration aims to exchange data to know the actual income of taxpayers, register new individuals, and make tax profiles for those who are dodging or still not paying taxes.

The FBR plans to target wealthy individuals residing in Pakistan for tax collection, as their lavish lifestyles suggest they have substantial incomes but do not pay tax.

A high-level technical committee which includes officials from NADRA and FBR has been established to ensure proper data integration for broadening the tax base.

The committee is headed by NADRA’s chairman and includes senior NADRA officials such as the chief project officer, along with the CEO of Pakistan Revenue Automation Limited (PRAL) and two senior FBR officials.

Latest reports indicate that there is significant evidence pointing to the fact that many of these wealthy individuals are not fully meeting their tax responsibilities.

The FBR aims to use all available data to bring more people into the tax net, focusing on registering non-filers and verifying the real income of current taxpayers based on NADRA’s records.

As per Section 175B of the Income Tax Ordinance, NADRA is required to share its data with the FBR, either on its own initiative or upon request, to help expand the tax base and fulfil the requirements of the ordinance.

This move is likely to be praised by the salaried class and those with low incomes, who have previously protested that the tax burden should also be placed on wealthy Pakistanis earning substantial amounts, rather than solely on those working tough 9-to-5 jobs and struggling to meet daily expenses.