The Auditor General of Pakistan (AGP) has revealed that the Federal Board of Revenue (FBR) has not fully used the data available on the Malomaat Portal of IRIS, resulting in many high-net-worth individuals filing nil tax returns with zero payment of actual liabilities.
According to the AGP’s report on Inland Revenue and Customs (2024-25), the FBR already has access to a wide range of source data through the portal. This includes details of people with industrial electricity connections, foreign travel history, and vehicles above 1500cc. However, despite this information, the true potential of tax revenue from such individuals is not being realized.
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AGP’s Recommendations
The report suggests that the FBR and its field formations should:
- Compulsorily register potential taxpayers using data on electricity/gas consumers, vehicle registrations, and foreign travel history.
- Provide auditors access to relevant data portals through mutually agreed data-sharing protocols.
- Strengthen coordination with institutions like NADRA, motor registration authorities, property registrars, and withholding agents to enroll new taxpayers.
- Enforce legal measures to recover unpaid taxes from individuals hiding their real income.
Broadening of Tax Base (BTB) Wing
The Broadening of Tax Base (BTB) wing, created in 2013, was specifically tasked with bringing new taxpayers into the tax system. Its role is to coordinate with organizations holding data on large financial transactions and use such datasets to expand Pakistan’s tax base.
However, the AGP report shows that despite having rich datasets through the Malomaat Portal, the FBR has yet to properly utilize the information to increase actual tax collection.
