The Lahore Tax Bar Association (LTBA) is pushing the Federal Board of Revenue (FBR) to adopt a digital solution for taxpayer biometric verification, a move that could significantly streamline the sales tax registration process. Citing major hurdles with the current system, the LTBA has formally proposed that the FBR, in collaboration with the National Database Registration Authority (NADRA), develop a secure mobile application for this purpose.
The current system, mandated by SRO 350(I)/2024, requires taxpayers to complete physical biometric verification at a NADRA office at the time of their sales tax registration and annually thereafter. While this method works for many, the LTBA’s letter to the FBR chairman, Muhammad Asif Rana, highlights that it creates considerable difficulties for key groups, including:
- Overseas Pakistanis who are unable to physically visit a NADRA office.
- Individuals in remote or underdeveloped regions with limited access to verification centers.
- Elderly or physically challenged individuals for whom travel to a NADRA office is a major challenge.
This lack of an alternative, remote option often leads to significant delays in registration and business operations, discouraging people from entering the formal tax system.
A Proposed Solution and Its Precedent
The LTBA proposes a mobile application that would allow taxpayers to use their smartphones’ built-in features, such as facial recognition and fingerprint scanning, for secure, real-time verification. The app would be integrated with both FBR and NADRA databases, ensuring a seamless and secure process. The association notes that this model is not new to Pakistan, with many banks and other government institutions already using similar mobile-based verification systems.
This modern approach would offer several benefits:
- Improved access for a wider range of taxpayers, particularly those living abroad or in remote areas.
- Faster compliance with reduced administrative delays.
- Growth of the tax base by removing unnecessary barriers to registration.
- Alignment with the FBR’s broader digitalization efforts.
The LTBA is confident that embracing a mobile-based solution would modernize taxpayer services and contribute to a more efficient and inclusive tax collection system for the country.
