Pakistan Starting New Tax Data Project

February 14, 2011 Taxation in Pakistan

Data storage - old and newThe Federal Board of Revenue of Pakistan is initiating a new data collection project, which is expected to greatly increase the amount of comprehensive financial information held on nearly 700 thousand of the country’s richest taxpayers.

On February 12th the Federal Board of Revenue (FBR) of Pakistan announced in a media statement that a new specialized analysis unit will be created in 2011, with the purpose of collecting greater amounts of data on high-income earners, in an effort to better monitor affluent taxpayers for instances of tax evasion. The new unit will be established within the office of Directorate General of Strategic Planning and Statistics, and will scour tax and financial information held by Regional Tax Offices (RTO) of Pakistan and the national Large Taxpayer Units (LTU). The collected and analyzed data will be passed on to the National and Database Registration Authority (NADRA), where it will be used for assessment of tax payments.

It is expected that new unit will create comprehensive data sets on approximately 700 thousand of Pakistan’s wealthiest taxpayers. Special attention will be given to records concerning the assets, property holdings, large transactions, claimed expense and investments of taxpayers. For data matching purposes, the FBR will also make available several years of archived data concerning taxpayers’ tax affairs.

Once the initial acquisition and analysis of the data is complete, the NADRA and FBR are expected to form a new collaborative unit which will examine the results of the project and judge its effectiveness. It is expected that the combined analysis will be used to explore possibilities for expansion of the data set. It is hoped that the work will be effective in expanding the country’s tax base, and ultimately raising tax revenues.

Photo by Ian-S