To assist big data research and the integration of taxpayer databases, the Pakistan government has chosen to create a high-capacity data warehouse. According to a Federal Board of Revenue (FBR) study, the FBR plans to replace end-of-life equipment in its data centers and improve its information technology (IT) systems, including a high-capacity data warehouse to facilitate big data analysis and database integration.
The research claims that FBR must update its information and computer technology infrastructure in order to implement its reform initiatives through the use of contemporary technologies in its data centers.
According to the report, the FBR is dedicated to putting its ICT vision into practice in order to transform into a cutting-edge, fully automated, and data-driven organization with integrated systems that are not only connected internally but also nationally with all the organizations (both public and private) that can assist in detecting tax frauds.
Three major data-related centers operated by FBR are located in Pakistan: the data center at the company’s headquarters, the PRAL office in Islamabad, and the Disaster Recovery office in Karachi. Along with data centers, FBR’s more than 35 regional offices across Pakistan would receive ICT equipment.
Some business processes, like filing tax returns and goods declarations, have been automated by FBR’s primary IT 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 (GDs). However, many systems lack crucial features like tracking tax arrears or a transit module and do not share data (WeBOC).
Therefore, in order to combine and analyze big data with acceptable data protection, FBR needs the ICT infrastructure and technological expertise.
Efficiency improvements will result from ICT investments in streamlined and automated business processes that enable paperless administration, real-time contact with FBR field offices, and e-services for taxpayers. The initiative will assist in carrying out the long-term reform agenda for the FBR. The project’s solutions are based on the “low rate-broad base” approach, which states that broadening the tax base and enhancing compliance are more effective ways to increase revenues than enacting new taxes or raising tax rates.