Automated system for data analysis: PM directs FBR, Nadra to expedite process

Prime Minister Imran Khan has directed Federal Board of Revenue (FBR) and National Database & Registration Authority (NADRA) to expedite process of establishing an automated system for data analysis and ensure its authenticity for broadening the tax base.

FBR Chairman Shabbar Zaidi confirmed to Business Recorder that the automated system of FBR/NADRA to discover new taxpayers was discussed during the meeting with the PM on Friday.

FBR Chairman Shabbar Zaidi and NADRA Chairman Usman Yousaf Mubeen called on Prime Minister Imran Khan.

They discussed the matter pertaining to an increase in the tax net.

The Prime Minister said that the tax net should be increased to increase the capability of the government. "After an increase in the tax net, the burden of extra taxes on the taxpayers would be reduced," he said.

Imran Khan said that the move would ensure provision of education, health and other amenities in far-flung areas.

He said that the tax payment is a national obligation. "The restoration of credibility of taxpayers is a key factor for increasing the tax net," he added.

The Prime Minister said that the government is striving to make the tax system transparent. "Patriotic citizens should play their role in the progress of the country," he urged.

The FBR and NADRA have agreed on creation of mathematical models and data analytics for broadening the tax base.

According to a tweet of Shabbar Zaidi late Friday night, the FBR will very soon issue very strict instructions to all officers, employees and staff of all formations of FBR not to interact with businessmen through personal visits, telephone calls, cell phone messages or emails. Automated/authorised system will be only manner to interact, Shabbar Zaidi added.

Sources said that the NADRA is conducting its own analysis on the basis of consumption patterns of people to expand the tax base.

The coordination between the FBR and NADRA would ensure development of an Enterprise Grade Solution that would facilitate collection of tax from the potential evaders and short filers identified through the tax net broadening exercise conducted by NADRA using advance analytical and regression models.

An expert said that the creation of mathematical model and application of data analytics would result in identification of tax evaders and short filers, profiling of identified assets and expenses patterns on individual basis, developing and hosting of an exclusive enterprise grade website enabled with secured login, development of payment voucher system and integration with banks, online report sharing with FBR and concerned authorities, real time integration with IRIS FBR.

In the past, FBR and NADRA had signed Memorandum of Understanding (MoU) during the tenure of former Chairman FBR Mohammad Jehanzeb Khan in which both the departments agreed to join hands for sharing data with the purpose to broaden tax base. The FBR shared its data gathered through different avenues with the NADRA.