ISLAMABAD: The proposed amendment giving powers to the Federal Board of Revenue (FBR) to have real-time access to the databases of the National Database and Registration Authority (Nadra), the Federal Investigation Agency (FIA), and the provincial excise and taxation departments would be "illegal" without protection and legal framework under the Data Protection Act, which is presently pending in the parliament as a bill.
Tax experts told Business Recorder here on Saturday that the Data Protection Bill had yet to be passed by the Parliament. The Finance Bill 2020 has proposed to extend facility to the FBR to have real-time access to databases of the NADRA and the FIA without legal cover under the Data Protection Law.
The Finance Bill 2020 has not talked about the powers of the FBR to be granted access to such data under the bill. The government intends to promulgate this law to regulate various data collectors.
As per sec 5, 6, 7 and 8 of the proposed bill, data collectors have to share the purpose with the subject person; however, Section 30 provided exemption from such sharing, if the information has to be processed for tax purposes.
This is indeed a good opportunity for the FBR to make necessary arrangements to bring various silos at one place but first get the legislation passed by both the houses.
Under the draft Data Protection Law, it intends to govern the collection, processing, use and disclosure of personal data and to establish and making provisions about offenses relating to violation of the right to data privacy of individuals by collecting, obtaining or processing of personal data by any means.
After the passage of the Data Protection Bill, the federal government shall, by notification in the official gazette, establish an authority to be known as the Personal Data Protection Authority of Pakistan, to carry out the purposes of this act.
The authority shall be responsible to protect the interest of the data subject and enforce protection of personal data, prevent any misuse of personal data and promote awareness of data protection.
A new Section 56-AB under the Sales Tax Act, 1990, contained in the Finance Bill, 2020, if passed, will allow the access to the FBR to the various databases including (a) the NADRA with respect to information pertaining to the National Identity Card (NIC), the Pakistan Origin Card, the Overseas Identity Card, the Alien Registration Card, and other particulars contained in the citizen database; (b) the FIA and the Bureau of Emigration and Overseas Employment with respect to details of international entry and exit of all persons and information pertaining to work permits, employment visas and immigration visas; (c) the Islamabad Capital Territory and provincial and local land record and development authorities with respect to record-of rights including digitized edition of record-of-rights, periodic record, record of mutations and report of acquisition of rights; (d) the Islamabad Capital Territory and provincial excise and taxation departments with respect to information regarding registration of vehicles, transfer of ownership and other associated record; (e) all electricity suppliers and gas transmission and distribution companies with respect to particulars of a consumer, the units consumed and the amount of bill charged or paid: Provided that where the connection is shared or is used by a person other than the owner, the name and NIC of the owner, and the user shall also be furnished: Provided further that all electricity suppliers and gas transmission and distribution companies shall make arrangements by the 1st day of January, 2021 for allowing consumers to update the ratio of sharing of a connection or the particulars of users, as the case may be; and (f) any other agency, authority, institution or organisation, notified by the board.
The proposed provision is said to be violative of law presently under consideration of the Parliament as FBR unless the same is passed under the Money Bill cannot overdo a law that needs approval of both the houses as per the Constitution.
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