Tax filers double after NADRA data access by the FBR

ISLAMABAD: The country saw a huge increase in the number of tax return filers, as the Federal Board of Revenue (FBR) reportedly gained access to citizens’ private data from the National Database and Registration Authority (NADRA).

The sharp rise in tax filers reflects the current government’s aggressive approach to expand the tax base and increase revenue collection.

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According to reports, the FBR is utilising data on property ownership, bank balances, and foreign travel expenditures to broaden its tax net.

The ‘approach’ is targeting citizens who have not previously filed tax returns. The government also instructed NADRA to quicken the sharing of relevant data with the FBR to increase tax filers.

The reportedly aligns with the International Monetary Fund (IMF) programme’s target of raising the tax-to-GDP ratio to 13.7 per cent.

The IMF instructed the current governed to increase tax revenue as part of its economic reform  agenda for Pakistan. The cash-starved, economically struggling country of 240 million has been struggling with fiscal deficits and economic growth.

The national revenue collector also plans to inteoduce a tax on agricultural income starting the next fiscal year. The tax will align with the federal income tax and corporate tax regulations.

Agriculture is a key sector with 70 per cent of the public directly or indirectly involved with it. However, it is also one of least taxed sectors.

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The FRB is also reportedly engaging with the State Bank and commercial banks to improve data sharing. This will enable yet another government department monitor private citizens’ financial transactions and ‘identify’ potential tax evaders.