Lahore, The Federal Board of Revenue (FBR) of Pakistan has announced the establishment of 145 District Tax Offices across the country, aiming to incorporate 1.5 to 2 million new taxpayers into the system by June 2024. This initiative is part of a broader effort to increase the country’s tax-to-GDP ratio and enhance tax compliance.

According to Federal Board of Revenue, these newly established offices are a critical component of the FBR’s restructuring efforts. They will be instrumental in broadening the tax base and are expected to play a key role in improving revenue generation. The offices will be led by District Tax Officers, focusing on enforcing Income Tax Returns from non-filers and stop filers. A notable feature of this initiative is the utilization of third-party data from various departments and agencies, which will assist in identifying potential taxpayers who have not yet registered or filed tax returns.

One of the critical tools for the FBR in this initiative is the implementation of section 114B in the Income Tax Ordinance, 2001. This section allows for the disconnection of utility services and the blocking of mobile SIMs for individuals who fail to file returns in response to official notices. The Federal Government’s commitment to supporting the FBR is evident in the introduction of new Documentation Law, which mandates various agencies and departments to provide data to the FBR through an automated common transmission system. Additionally, the National Database and Registration Authority (NADRA) is collaborating with the FBR to help expand the tax base through data integration.

This initiative is expected to not only strengthen the FBR’s capacity to enforce tax laws but also to facilitate taxpayers in filing returns by establishing dedicated offices for assistance. The move is seen as a crucial step towards ensuring a more inclusive and efficient tax system in Pakistan.