The National Board of Revenue (NBR) plans to introduce a QR code-based tracking system, starting from the production stage, to strengthen monitoring and prevent tax and VAT evasion.
NBR Chairman Abdur Rahman Khan shared this information during a pre-budget discussion with apparel exporters held at the organisation’s headquarters in Agargaon on Sunday. He stated that once this technology-driven initiative is implemented, the tax payment status of every product in the market can be easily verified.
The chairman further noted that the country’s revenue system has been facing risks due to a long-term reliance on a limited number of regular taxpayers. Therefore, the use of modern technology has become essential to expand the tax base and reduce evasion.
Participatory monitoring
According to the plan, a unique QR code will be attached to each product during the production phase. Scanning this code will reveal whether the product has entered the market after the proper payment of VAT and taxes, thereby ensuring monitoring at every stage of the supply chain.
The NBR chairman also announced that the general public would be involved in this process alongside administrative oversight.
“There are plans to reward consumers if they detect any irregularities by scanning the QR codes with their mobile phones,” he said, adding that this would create a participatory system for identifying tax evasion.
Digitalisation and automated audits
The NBR now possesses a substantial database as the return filing process has been digitalised. This data is being utilised to identify non-filers and send automated notices, which is making the overall revenue system more effective.
The audit process has also undergone significant changes. With the introduction of “risk-based automated audit selection,” manual selection has been eliminated. The organisation believes this will reduce the risk of unnecessary harassment.
According to NBR data, 15,000 income tax files were initially brought under audit this fiscal year, followed by an additional 60,000 files. Furthermore, 6,000 company files have been brought under audit, while the income tax records of 16 large companies are subject to joint audits.
The NBR chairman emphasised that making the tax system simple and transparent will increase the confidence of businesspeople. This will also pave the way for new taxpayers to join the system, which will play a vital role in the country’s long-term economic stability.
