‘Nadra’s tax data helpful but not final solution’

ISLAMABAD: Tax experts have termed Nadra’s calculated tax gap of Rs950 billion a ‘hoax’ exercise as their data analysis had never turned out favourable for taxability purposes.

One top official from the FBR who remained affiliated with exercises done by the Nadra for the purposes of expanding tax base since 2011-12 told The News that National Database Registration Authority (Nadra) is basically IT based entity and they always over simplified taxation matters through their analysis. “There can be 1,000 different scenarios in case of 1,000 cases of taxation issues separately and the data entry cannot turn out such information for the purpose of taxability in so much simple manner,” they added. Just the computing of data does not mean that it will be converted into tax collection purpose. It can be done on papers only but the actual collection may achieve nothing. However, the data compiled by Nadra can be used for broadening of tax base if tax authorities use it intelligently to bring more people into tax net. It can be used as one of the available tools but if someone is portraying it as “ultimate solution” before the PM, it can be termed just “hoax” attempt and nothing else.

When asked to FBR Chairman Shahbar Zaidi about domain of FBR on account of policy formulation and tax collection and presentation given by Nadra to PM Imran Khan, he replied in press conference on Friday that the compilation of data had been done by the Nadra but determination of due taxes in shape of assessment and collection of taxes is the domain of the FBR and it would remain vest within the FBR domain.

On other hand, the Nadra Chairman Usman Mobeen told the media on Thursday that they found tax gap of Rs0.1 million among 4.3 million and 0.2 million among 1.4 million individuals through their data analysis.

However, one top official told this scribe when Nadra made presentation to the FBR officials they raised the question to open up profile of one individual who had travelled more than 50 times. It was found by the FBR that the person was “Khappia” who used to travel to Dubai to bring a few products to sell. So there can be different scenarios and one cannot fit its findings on all cases, added the official.

In the past two regimes, the Nadra made efforts to convince the rulers that their data could result into expanding the tax base. But their efforts could not prove fruitful because simple data entry could not fully grasp to convert for taxable purposes because the data does not know about tax laws and its different provisions.

Now again the Nadra has presented its data analysis before Prime Minister Imran Khan and shared its estimates that around Rs950 billion tax gap on account of non-filers and short filers. This whopping figure of tax gap had again grabbed attention of the ruling elite and now no one knew what the government was going to do to move ahead on this issue.

When contacted, FBR’s top official said that the FBR and Nadra shared their data online where non-filers would know exactly what kind of data possessed by the government in case of each individual. The individual will have access to get details after insertion of CNIC on the website of FBR and Nadra separately. The Nadra and FBR demonstrated their respective online systems on Thursday evening and it was made available on Friday.

Earlier, the FBR informed the Senate Standing Committee on Finance that the data of 5 to 6 million individuals specifically non-filers would be available on the web-portal of the FBR and non-filers would have online access to ascertain details of his/her assets to verify data compiled by the FBR.

The FBR’S Member Inland Revenue Policy Dr Hamid Ateeq Sarwar told the Senate panel that the FBR was going to give online access of information of assets available with its database to the concerned persons. The non-filers can now access details of assets in their names. However, information on the website could only be accessed by the concerned persons giving their user names/CNIC etc.