Mubarak Zeb Khan, in a recent article published on Dawn, discusses a groundbreaking proposal approved by the Federal Cabinet for the establishment of a technology-driven tax body utilizing big data. Despite ambitious goals for revenue growth projected by FY27, the initiative faces hurdles in securing necessary financial resources for infrastructure and specialized software.
Central to the reform is the creation of the Autonomous Data Access and Management Systems (ADAMS) Agency, tasked with spearheading the transition to a data-driven tax administration. The proposed National Documentation Law mandates data sharing among public and private sectors to ensure compliance with access, quality, and security standards.
While promising streamlined data management and enhanced compliance, concerns over privacy and data security are highlighted. To maintain taxpayer trust, the proposed agency must operate under stringent privacy regulations. Additionally, plans for Pakistan Revenue Automation Ltd (PRAL) restructuring aim to optimize operations and integrate National Database Registration Authority (NADRA) data into tax administration.
To address compliance gaps, the initiative aims to digitize withholding tax collection through the Synchronised Withholding Administration and Payment System (SWAPS). Collaboration with entities like Karandaaz and the Bill & Melinda Gates Foundation underscores the multifaceted approach to modernizing tax collection.
Ultimately, the success of these digital reforms hinges on robust political commitment to their implementation, marking a pivotal moment in Pakistan’s tax administration landscape.
You can read the full article here.
