Daily Insights

FBR to Launch National Sales Tax Return

By 11/01/2022 March 30th, 2022 0 Comments

The Federal Board of Revenue (FBR) has decided to launch the National Sales Tax Return to facilitate taxpayers, promote ease of doing business, and reduce compliance costs. The sales tax return is one of the key recommendations of the World Bank and IMF. It will simplify tax filing procedures, minimise data entry, and solve data and calculation errors. The National Sales Tax Return will also enable tax collectors to improve revenue potential and compliance without audits. It will encourage the harmonisation of tax procedures to promote national unity and ensure cohesion.

Recently, the government has announced a single sales tax portal that aims to digitise and automatise revenue collection procedures. The World Bank funds the project with $400 million. The portal’s objective is to facilitate the taxpayers to file their returns to a single tax authority instead of multiple tax jurisdictions. It will simplify the tax collection process by reducing time and efforts and maintaining transparency in tax filing procedures.

These government initiatives are considered significant milestones towards automation, data integration, and harmonisation of taxes. The government is improving the taxation system by introducing new digital techniques and offering taxpayers support to create a stimulated and professional workforce. The central authority simplifies tax laws to create a taxpayer-friendly environment and develop an honest and efficient tax administration to raise governmental revenue.

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