Completely Paperless Tax System Not Possible: FBR

The Federal Board of Revenue (FBR) has categorically declared that a completely paperless system for taxpayers is not possible keeping in view the documentation requirements. According to a report prepared by the FBR on new reforms in consultation with the World Bank (WB), one of the areas of reform is the automation of FBR processes. As per the FBR team, in practical terms, a completely paperless system is not possible and documentation is also necessary. The report said that concerning the case history of an individual or organization, access to full documentation files, which are comprehensive and contain a detailed history, is important for processing cases and making informed decisions. The files are sometimes large and take many years; hence this process of automation should be gradual to allow for complete files to be available electronically. Taxpayers need to be taken on board and their issues and grievances addressed. Taxpayer outreach is a big issue. It is critical to sensitize people on the importance of paying taxes and develop a robust tax culture. FBR cannot work in isolation, and their work is contingent on cooperation and support from other agencies such as the Excise and Taxation Department, NADRA, CDA, etc. There is a need to streamline the systems to engage in seamless data sharing (among different entities). Enforcement, presence, and outreach are critical issues. FBR should follow through on policies, not change them frequently, and be consistent about enforcement, the report added.