PRA, WB agree to evolve digital set-up to expand tax base

LAHORE: The Punjab Revenue Authority (PRA) and the World Bank have reached an agreement to introduce advanced digital systems to expand Punjab's tax base and enhance revenue collection. During a significant meeting, a delegation from the World Bank, led by Regional Director Mr Michael Roggi, Manager Sylvia Solf, and other members, discussed ways to modernize Punjab's taxation system and transition it to a digital framework.

The conversation focused on leveraging digital databases for tax collection and the Digital Economy Enhancement Project. Both parties agreed to adopt modern tax models and international best practices from various nations. PRA Chairman Moazzam Iqbal Sipra emphasized that digital tools will be employed to broaden the tax base and bring new enterprises into the tax system.

The meeting also suggested integrating data from various government departments to create a more effective tax collection method. Sipra noted that digital data would aid in detecting tax evasion, misappropriation, and inconsistencies in business records. The World Bank delegation assured that PRA's digital monitoring and tax administration systems would be further strengthened.

With World Bank technical assistance and funding support, PRA and the Punjab Information Technology Board (PITB) will collaborate to create a working plan for digital tax reforms. Sipra highlighted that modern technology will facilitate better utilization of data related to tax returns, payments, and business activities, aligning with international standards.

He added that a practical roadmap for tax reforms would be developed with the World Bank's technical support.