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Simplified tax forms

2025-07-16
HE rollout of a new interactive tax return form should ease filing by simplifying the procedure, addressing a long-standing complaint of taxpayers. The new form has an autofill system built in to seamlessly fetch data linked to the filers` CNICs on their incomes, expenditure, assets, at-source deductions, their closing bank balance at the end of each tax year, etc. This should streamline data entry and minimise manual input by taxpayers. The new form is designed to be a step-by-step filing procedure to guide users through the process with convenience.

The FBR also plans to roll it out in Urdu soon, while other versions in the major regional languages are expected to be introduced later.

Besides making it easier for taxpayers to file their returns on their own without requiring any hired professional help, the move should go a long way in helping the FBR detect short-filing and evasion.

While the new tax filing reform is a positive development and makes an attempt to facilitate filers, the procedural changes do not make up for the shortcomings in the overall tax regime that are preventing an increase in the abysmally low tax-to-GDP ratio of around 10pc one of the lowest not just in the world but also in the region. Powerful and cash-rich segments of the economy retail, real estate, agriculture, high net-worth professionals, and so on effectively remain out of the tax system as the burden of financing the affairs of the state is being shouldered by the corporate sector and salaried people. The procedural improvements appear to be mostly to extract more money from the compliant taxpayers rather than those who are out of the net.

If the country is to pull itself out of the debt trap and get back on its feet, the procedural improvements must be accompanied by strict action against those who are not ready to pay their due.