FBR decides to maintain national databank

RECORDER REPORT

ISLAMABAD: In order to document all economic activities, the Federal Board of Revenue (FBR) has decided to maintain a national databank of business transactions taking place in the country with the help of National Database & Registration Authority (NADRA) and other sources.

Sources said that the proposal of top chartered accountant Shabbar Zaidi has been accepted by the Ministry of Finance, Tax Reforms Commission (TRC) and FBR to maintain a comprehensive databank with the help of information available with NADRA and other third party sources. The idea is to capture the economic transactions for documentation and expanding the tax net.

Under the first stage, the FBR will request NADRA for collection of the available information with the authority.

Shabbar Zaidi convinced the tax authorities and policymakers that the availability of the authentic databank on national level would create deterrence and result in expanding the tax base. Once the people would know that the FBR is equipped with the latest data and profiles, this would be instrumental in broadening of the tax base and documentation of economic transactions taking place in the country.

Under the proposal, the FBR will collect information about banking transactions, foreign travels, property data, vehicles data and all information of citizens available with the NDARA. This is the first stage of collecting the data from NADRA which would be maintained by the FBR. The focus of the entire exercise is to capture the NADRA’s data for maintaining at the FBR’s level. The utilisation of the data is the next stage of the said exercise.

The FFBR can also document all Computerised National Identity Card (CNIC) numbers-based economic activities and register new taxpayers on the basis of the CNIC, which is used to carry out all kinds of transactions including banking transactions, utility services and buying/selling activities.

The FBR can establish real time linkages with relevant organisations including NADRA, banks, provincial authorities, and utility service providers to discover new taxpayers and bring them into the tax net.