‘Tax filing should be completely electronic’
A roadmap with targets and deadlines has been drawn out for the Federal Board of Revenue.
ISLAMABAD:
The World Bank (WB) has strongly recommended the Federal Board of Revenue (FBR) to introduce incentives and schemes for taxpayers to encourage the electronic filing of returns and statements. The filing will be extended to all categories of business and trade and the WB has given a deadline for the completion of this project.
Sources said that the WB review mission drafted a report on the Tax Administration Reform Project (TARP) with a recommendation to extend the electronic filing facility to all taxpayers.
According to the WB report, the FBR has made progress in this regard. The issue now is the extension of this facility to all filers. An important issue in designing these schemes is the presumption that these systems are beneficial to the taxpayers in terms of costs and time. However, if the system is easily available and is easy to use, taxpayers will use them, the WB said.
The WB suggested that the FBR publicise the advantages of electronic filing and grant extended time for electronic filing. The FBR should also require government suppliers to exclusively file and pay electronically and set up tax return preparation centres in shopping centres and professional associations.
The WB recommended the FBR to set targets for increasing the percentage of income tax returns and statements filed electronically to 70 per cent in 2011, 90 per cent in 2012 and 99 per cent in 2013. The WB further recommended that the FBR consider having tax facilitation centres in all districts to provide taxpayer access to computers for filing returns.
The FBR has achieved encouraging results regarding the modernisation of its filing and payment systems, said the WB report. Sales tax payers and withholding agents are required to file their returns and statements electronically. Income tax returns of sales tax payers also are required to be filed electronically. The results have been good but it is necessary to further improve the system, said the report.
Some taxpayers are paying their taxes electronically through the State Bank of Pakistan and in the near future, the system to accept e-payments will be extended to all banks.
Published in The Express Tribune, October 22nd, 2010.
The World Bank (WB) has strongly recommended the Federal Board of Revenue (FBR) to introduce incentives and schemes for taxpayers to encourage the electronic filing of returns and statements. The filing will be extended to all categories of business and trade and the WB has given a deadline for the completion of this project.
Sources said that the WB review mission drafted a report on the Tax Administration Reform Project (TARP) with a recommendation to extend the electronic filing facility to all taxpayers.
According to the WB report, the FBR has made progress in this regard. The issue now is the extension of this facility to all filers. An important issue in designing these schemes is the presumption that these systems are beneficial to the taxpayers in terms of costs and time. However, if the system is easily available and is easy to use, taxpayers will use them, the WB said.
The WB suggested that the FBR publicise the advantages of electronic filing and grant extended time for electronic filing. The FBR should also require government suppliers to exclusively file and pay electronically and set up tax return preparation centres in shopping centres and professional associations.
The WB recommended the FBR to set targets for increasing the percentage of income tax returns and statements filed electronically to 70 per cent in 2011, 90 per cent in 2012 and 99 per cent in 2013. The WB further recommended that the FBR consider having tax facilitation centres in all districts to provide taxpayer access to computers for filing returns.
The FBR has achieved encouraging results regarding the modernisation of its filing and payment systems, said the WB report. Sales tax payers and withholding agents are required to file their returns and statements electronically. Income tax returns of sales tax payers also are required to be filed electronically. The results have been good but it is necessary to further improve the system, said the report.
Some taxpayers are paying their taxes electronically through the State Bank of Pakistan and in the near future, the system to accept e-payments will be extended to all banks.
Published in The Express Tribune, October 22nd, 2010.