Islamabad: To strengthen tax administration, the Federal Board of Revenue (FBR) has initiated the Inland Revenue Strategic Reform Plan (2021-25), news sources reported on April 21. The reform plan will target four strategic areas including tax compliance, strengthening tax administration, building institutional capacity, and reinforcing the legislative framework.
The Inland Revenue Strategic Reform Plan (2021-25) was launched in a ceremony chaired by FBR Chairman Ashfaq Ahmed and attended by notable officials of international donors including the International Monetary Fund (IMF), World Bank, Asian Development Bank, and senior leadership of FBR.
Reportedly, the tax reform plan is intended to boost compliance and fortify legislation to prevent corporate tax evasion. Furthermore, it was found that the Inland Revenue intends to address the issue of low tax compliance by implementing a compliance risk management capability; improving registration, filing, payment, and reporting compliance; lowering compliance costs, strengthening the audit capability, and streamlining processes and procedures. Furthermore, in order to improve tax estimation and compliance, the FBR has established a data processing system and used integrated technologies. According to FBR analysts, the new approach will help extend the country’s revenue base and bring more individuals into the tax net.
It is critical to note that the FBR and the National Database and Registration Authority are collaborating to create techniques and systems for identifying filers and non-filers. The technology will be rolled out soon, and it will also add a layer to the existing tax collecting system.
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