Nadra gets legal cover for data sharing with FBR.

ISLAMABAD -- The government has introduced legislation to empower the National Database and Registration Authority (Nadra) to share records and information about people with the Federal Board of Revenue (FBR) as part of the broadening of the tax base.

Several measures were introduced through Finance Bill 2022 to broaden the tax base, especially the empowering of FBR to ask utility companies to disconnect electricity and gas connections of non-filers of tax returns or avoiding of sales tax registration.

As per amendments, Nadra will now share personal information of citizens with the FBR regarding broadening of tax base like - identify any person whether a taxpayer or not, details of incomes, receipts, assets, properties, liabilities, expenditures, or transactions that have escaped assessment/are under-assessed/had been assessed at a low rate subjected to excessive relief or refund/misdeclared or misclassified under a particular head of income or otherwise.

The proposed bill also empowers Nadra to use any artificial intelligence/mathematical or statistical modeling/any other modern device/calculation method to compute the income and tax liability of anyone.

Move aimed at broadening tax base

The FBR will notify such calculations to the person on whom it was determined to pay the amount subject to the terms, conditions, installments, discounts, reprieves pertaining to penalty and default surcharge, and time limits.

The bill has empowered FBR to direct gas and electricity distribution companies to discontinue the gas and electricity connections of those persons who fail to register for sales tax purposes or those notified tier-1 retailers who are registered but not integrated with the Board's computerized system.

The World Customs Organisation (WCO) updates its Harmonized Commodity Description and Coding System (HS) after every five years to accommodate modern developments and changing trade patterns.

The last HS version was updated in 2017. The current amendments to the HS nomenclature have entered into force since Jan 1, 2022. Pakistan is a signatory to the HS Convention and must adopt the HS 2022 version. In Pakistan, it...

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