The Federal Board of Revenue (FBR), in collaboration with the World Bank, has decided to set up a data warehouse in which information will be collected from all utility agencies, motor vehicle registration authorities, airlines, banks, NADRA, excise department and other federal and provincial departments to increase tax net in the country. According to newspaper reports, the World Bank will extend a $15 million grant to the FBR to set up the data warehouse while modern computers will be installed in the FBR and its field formations to enhance automation in the tax collection system. The provincial authorities will be bound to send copies of the sale and purchase deeds of properties to the FBR. The step is aimed at to document the national economy. The reports also say that the databank is being set up to enhance tax net and to increase the ratio of GDP. This practice will also increase the revenues of the provincial governments and the FBR will be able to have cognizance ofthe income and expenditures of those people who are still not in the tax net. All the data will be stored in the warehouse and a software will be developed to act against those who do not pay taxes despite having taxable income.
This system is the need of the hour if the government sincerely wants to document the economy and enhance tax net. Pakistan’s middle class is thriving and most of the people do not pay taxes. However, there should not be one sided view of the situation as many people belong to white color class and just try to maintain their standard of living. Therefore, the minimum slab for collecting the tax should have to be enhanced. Every law in the country is applicable only on a gentle personas criminals always find a way out in any situation. The calculation of the taxable income should not be based on the whim of a taxation officer but on reality.
