Turning tax data into taxpayers

Mettis Global published an article by tax adviser Muzammil Hemani arguing that Pakistan now holds a wide range of tax-related data but must turn it into registered taxpayers. The piece lists sources available to FBR, including income tax returns, withholding statements, sales tax returns, banking activity, property and vehicle records, utility data, travel records and customs declarations. The author says the next step is to integrate these streams more systematically.

According to the article, withholding statements and sales tax annexures can reveal economically active persons who are not on the Active Taxpayers List or not registered. An enhanced deduction, the author notes, does not prove taxable income but can be a starting point for registration or further examination. The article also says a bank deposit may reflect business turnover, a loan or a gift rather than concealed income.

FBR reported 5.9 million income tax returns filed by 31 October 2025, up from five million a year earlier. The author proposes an annual data-conversion report showing new filers, taxable income declared and taxpayers retained over later years. He also stresses cybersecurity, controlled access and due process, adding that artificial intelligence cannot replace legal reasoning.