ISLAMABAD: The government has allowed the Federal Board of Revenue (FBR) real-time access to information and databases of various authorities such as the National Database and Registration Authority (NADRA), the Federal Investigation Agency (FIA), and the provincial excise and taxation departments.

Arshad Shehzad, a Karachi-based expert, explained that a new Section 56-AB under the Sales Tax Act, 1990, is proposed to be introduced in the Finance Bill, 2020, which allows the access to the FBR to the different 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.

Until real-time access to information and database is made available under sub-section (1), such information and data shall be provided periodically in such form and manner as may be prescribed.

All information received under this section shall be used only for tax purposes and kept confidential.

The amendment is brought with the objective to use information technology and available database to broaden the tax net. In his opinion, it is also the pragmatic approach to trace and enforce the taxation law on undocumented sector without causing any hassle to the already registered regime.