The government plans to broaden the tax net by gathering data from 145 federal and provincial institutions. This initiative aims to bring more people into the tax system by linking these institutions, including banks, defense housing authorities, and civil aviation, with the Federal Board of Revenue (FBR) in real time.
The FBR intends to revise the Income Tax Rules of 2002 and has released a draft for feedback from stakeholders. They’ve set a seven-day window for comments before finalizing the amendments, emphasizing that suggestions received after this period won’t be considered. Failure to connect and share real-time data with the FBR may result in penalties for responsible officers of the unconnected institutions.
This move establishes a system allowing tax authorities access to real-time information from various databases across these institutions. The FBR aims to have all entities linked to this system by January 15, 2024, as outlined in the proposed amendments to ensure comprehensive data access for tax purposes.
