Revenue generation is the life blood of an economy. A common feature of tax system around the world is to keep identifying potential tax payers for the expansion of its tax base and indicates the efficiency and capability of tax authorities. It is a complex and time consuming activity as addition of a new tax payer must be backed by evidence of income liable to tax.
Expansion of tax base in Pakistan has remained static much to the dismay of the tax authorities and international donor agencies. Pakistan has a narrow tax base with only 3.6 million taxpayers constituting only 2 % of the total population. Low and non-compliant tax base adversely affect revenue generation and the resultant low tax GDP ratio and dependence on external and internal debts.
It was in this back ground that the task of broadening of tax base (BTB) was taken up with renewed resolve in the year 2013 under the direct supervision of Federal Board of a Revenue. The primary objective of the BTB is to contribute towards a tax system based on equity and public trust.