FBR Plans Digital Invoicing and Audits as Tax Gap Hits Rs7tr
The Tax Gap Crisis
The Federal Board of Revenue (FBR) has announced significant reforms aimed at addressing the staggering tax gap, currently estimated at a distressing Rs7 trillion.
Planned Digital Invoicing
One of the key strategies is the introduction of digital invoicing. This move is intended to integrate technology within the tax system, offering more transparency and efficiency.
Engaging Chartered Accountants
To execute these reforms, the FBR plans to engage between 2,000 to 4,000 Chartered Accountants (CAs) or ACCA auditors. These experts will conduct desk audits on over half of the tax returns filed, ensuring compliance and identifying discrepancies.
Enhancing Tax Compliance
The overall objective of these initiatives is to narrow the tax gap significantly and bolster tax compliance among all segments of the economy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.