The government has chosen to build a large data warehouse to facilitate big data analysis and the merging of taxpayer databases.
FBR intends to upgrade its Information Technology (IT) systems
According to a report prepared by the Federal Board of Revenue (FBR), the FBR intends to upgrade its Information Technology (IT) systems, including a high-capacity data warehouse to support big data analysis and database integration, as well as the replacement of end-of-life equipment in the FBR’s data centers.
According to the research, the FBR has to update its information and computer technology infrastructure in order to carry out its reform measures by deploying cutting-edge technologies in its data centers.
FBR is committed to implementing its ICT vision
According to the report, the FBR is committed to implementing its ICT vision of becoming a modern, fully automated, and data-driven organization with integrated systems that are not only internally connected but also nationally connected with all organizations (public and private) that can assist in detecting tax fraud.
Three primary data-related centers
- In Pakistan, FBR has three primary data-related centers:
- FBR headquarters data center, the PRAL office in Islamabad,
- The Disaster Recovery office in Karachi.
In addition to data centers, ICT equipment would be delivered to more than 35 FBR regional offices throughout Pakistan.
Regional offices include regional taxation offices as well as Pakistan Customs. The offices are now in the process of assessing ICT equipment requirements while continuing to utilize existing systems. During stakeholder engagements, it was brought to the attention of stakeholders that demolished equipment at such offices would be repurposed at sub-offices. As a result, the amount of E-waste generated will be minimal and will be calculated at the time of disassembly.
Information technology systems of FBR
The FBR’s main information technology systems—the Inland Revenue Information System for income tax, the Sales Tax Realtime Invoice Verification (STRIVE) system for General Sales Tax (GST), and the Web Based One Custom (WeBOC) system for Customs—have automated some business processes, such as tax return and goods declaration filing (GDS). However, these systems do not exchange data and lack critical features such as tax arrears monitoring and a transit module (WeBOC).
As a result, FBR requires ICT infrastructure and technical expertise to combine and analyze large data while maintaining acceptable data security. By allowing paperless administration, real-time contact with FBR field offices, and e-services for taxpayers, ICT investments in streamlined and automated business processes will produce efficiency advantages.
The initiative will help the FBR achieve its long-term reform agenda. The project’s solutions are founded on the ‘low rate-broad base’ approach, which states that a sustainable increase in collections is obtained through broadening the tax base and boosting compliance, rather than imposing additional taxes or raising tax rates.