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FBR Teams Up with NADRA, Leveraging Technology to Better Curb Tax Evasion

FBR teams up with NADRA tax data sharing

ISLAMABAD FBR teams up with NADRA to curb tax evasion with the use of technology. The Federal Board of Revenue is working on making tax evasion and avoidance even more difficult, to boost tax revenue.

The Federal Board of Revenue (FBR) and the National Database and Registration Authority (NADRA) are advancing their collaborative efforts to broaden Pakistan’s tax base. This partnership is enhancing data sharing to assess taxpayers’ actual incomes, register new taxpayers, and establish detailed profiles of non-filers, according to sources from FBR.

Current Reports on Tax Data Sharing

According to media reports, the Federal Board of Revenue (FBR) is enhancing data-sharing mechanisms with provincial revenue authorities to better track taxpayers’ expenses, including property ownership, bank balances, and foreign travel history. Additionally, the government intends to harmonize taxes on agricultural income with the current income and corporate tax frameworks. Starting from the next financial year, provinces are expected to begin collecting agricultural taxes as part of this alignment.

To facilitate this expansion, a high-level technical committee has been established, comprising key officials from NADRA and the FBR. This committee, led by NADRA Chairman Lt. Gen. Muhammad Munir, is tasked with developing a comprehensive plan to register new taxpayers. Senior FBR officials, including the CEO of Pakistan Revenue Automation Limited (PRAL) and two senior officers, are also members of this committee. Together, they are closely examining taxpayer incomes to improve the overall efficiency of the tax system.

As part of these efforts, the FBR will also be linked with the State Bank of Pakistan and commercial banks to enhance data-sharing processes and streamline tax administration further.

FBR Teams up with NADRA to Expand Tax Base and Curb Tax Evasion

As part of this initiative, the FBR and NADRA are working on an extensive consultative process aimed at leveraging data more effectively. This includes using NADRA’s data to identify unreported income and registering those who have not filed tax returns. The expanded use of data aims to provide a clearer picture of taxpayers’ incomes and help identify non-filers across the country.

In a meeting in recent past at FBR Headquarters between FBR Chairman Malik Amjed Zubair Tiwana and NADRA Chairman Lieutenant General Muhammad Munir Afsar underscored both entities’ commitment to ongoing data-sharing coordination. Both leaders agreed to strengthen efforts to ensure eligible taxpayers are accurately identified and registered, reinforcing a tax culture throughout the country.

PRAL Restructuring for Enhanced Digital Support

As part of its drive to support digitization and automation, the FBR is restructuring its subsidiary, Pakistan Revenue Automation Limited (PRAL). The goal is to transform PRAL into a self-sustaining organization that will provide robust IT support for the FBR’s digital initiatives. FBR Chairman Tiwana has instructed PRAL’s CEO to present a comprehensive business plan focusing on rightsizing and enhancing technical expertise to facilitate FBR’s digitization projects. Although no large-scale layoffs are planned, redundant roles will be phased out to streamline operations and increase efficiency.

Legal Framework for Data Exchange

Under Income Tax Ordinance Section 175B, NADRA is authorized to share its records with the FBR, supporting tax base expansion and broader tax compliance. NADRA is also empowered to submit proposals to help the FBR identify income and assets that may have evaded assessment, have been under-assessed, or incorrectly classified. This includes the authority to assess discrepancies in asset valuations and facilitate a secure data exchange through a formal memorandum of understanding with the FBR.

n 2023, NADRA provided FBR with a list of 3,500 high-profile non-filers for on-ground verification, which FBR Operations processed to broaden the tax base. This enhanced data-sharing is part of the government’s broader strategy to reach a tax-to-GDP ratio of 13.7 percent as required under the ongoing IMF program.

This expanded collaboration between NADRA and the FBR is a key step toward achieving sustainable tax compliance, strengthening Pakistan’s fiscal framework, and driving revenue growth through targeted taxation reforms.

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