In a significant move toward enhancing tax compliance and broadening the tax base, government has constituted a new committee for data integration. Led by Lt Gen Muhammad Munir Afsar, the Chairman NADRA, this committee is tasked with developing a comprehensive plan for data integration to augment number of income tax return filers. The focus is on increasing figures from previous year’s 4.9 million to an ambitious target of 6.5 million within next eight months.
Data integration serves as a crucial mechanism for improving tax administration and fostering transparency. By consolidating information from various sources, authorities can streamline tax processes, identify potential sectors that have thus far remained untapped and ensure a more comprehensive tax net. The move comes as part of a broader strategy to fortify country’s economic foundation and reduce dependency on external financial assistance. The choice of the Chairman of NADRA, to lead this technical committee underscores the significance of leveraging technology and expertise from various sectors. The committee’s mandate extends beyond mere data integration, encompassing the review and transformation of the FBR’s IT infrastructure and restructuring of Pakistan Revenue Automation Ltd (PRAL) into a modern IT company. The committee’s focus on technological advancements, including data analytics, mathematical modelling, and integration of artificial intelligence, showcases a forward-thinking approach. These tools will not only enhance efficiency of tax administration but also contribute to a more data-driven and transparent financial landscape.
To achieve a more robust tax base, it is important to bring potential sectors such as retailers and real estate into the tax net. Historically, these sectors have posed challenges in terms of tax compliance, and their inclusion is pivotal for a more inclusive and equitable tax system. The motivation behind broadening the tax base must go beyond meeting international financial obligations. The emphasis should be on fostering economic independence. A stronger tax base is instrumental in reducing reliance on external loans and grants, allowing the nation to dictate its economic trajectory and break free from the cycle of debt.
