Innovative tax collection

Letter August 05, 2019
QR codes will not only provide increased tax collection but will help prevent corruption in govt machinery

KARACHI: The working class has suffered greatly from the taxation policies of the government. Tax is deducted from our salary. We have to pay taxes on things as well. We do not know whether the taxes we pay are actually deposited in the national treasury.

Many countries around the world have an innovative system where governments allow salaried workers to submit monthly purchase receipts and claim a certain percentage as tax rebate. The receipts submitted not only provide tax authorities with benchmarks during tax audits but also induce a tax culture as retailers are forced to register themselves.

We need a similar system in Pakistan. In today’s technologically-advanced world, we don’t need to rely on manual processes when we have QR codes and mobile phones. QR codes are small black boxes with patterns that carry information. They can be printed on paper and can be scanned by any mobile phone with a camera.

By requiring all retail outlets to provide QR coded receipts and allowing shoppers to download a mobile app, the government can provide seamless integration of tax claims direct from e-FBR accounts. The QR-coded information can also be tagged in real time with retailer’s monthly sales for reconciliation.

QR codes will not only provide increased tax collection to the FBR but will help prevent corruption in government machinery. They will also provide assurance and some tax relief to genuine taxpayers. This will help to document the economy even further.

Ahmer N Jakartawala

Published in The Express Tribune, August 5th, 2019.

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